Organization 

and 

Administration 

of 

Oklahoma 

The 

Brookings Institution 




Class. S&212aS 


Book _ YS)_ 3 -S l_ 


c_o 

CQEBWGHT DEPOSIT. 



& 








Report on a Survey 


of 

Organization and Administration 
of Oklahoma 


SUBMITTED TO 
GOVERNOR E. W. MARLAND 

By 


THE INSTITUTE FOR GOVERNMENT RESEARCH 
OF 

THE BROOKINGS INSTITUTION ✓ 
WASHINGTON, D. C. 


Published by 

E. W. MARLAND GOOD GOVERNMENT FUND 
B. S. GRAHAM, Director 


HARLOW PUBLISHING CORPORATION 
Oklahoma City 
1935 




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jKT ' a5 


.67 


4 

Copyright, 1935 by 

HARLOW PUBLISHING CORPORATION 


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©ClA 87843 

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@0T 22 ^ 


FOREWORD 


The continuing increase in the activities of government is a most important develop¬ 
ment of our generation. This expansion of public services seems to have been induced 
by the rapidly changing conditions in modern society. Applied science and inventive 
genius are forcing fundamental alterations in our social, economic, and political think¬ 
ing and ways of acting. Mechanical devices and new uses of power are all but literal¬ 
ly creating a new world. Bigness, complexity, and speed have become the common 
characteristics in our business and social life. Society has turned to government as an 
agency of control in dealing with problems created out of our changing world. 

These changes mean that questions touching on governmental organization and 
administration, public policy, and legislative, judicial and executive procedures are of 
increasing importance to the masses of the people and to social and economic groups. 
If government is to be called upon to enlarge the scope of its functions relating to busi¬ 
ness practices and our personal conduct, it follows that all citizens should be seriously 
concerned about the kind of government we have and need. Nothing short of the best 
in government should satisfy. Good government is a modern necessity. 

It was with the view to providing Oklahoma with better government that the 
Brookings Institution was engaged to make a complete study of governmental conditions 
i in our State. It should be a matter of common pride among our whole citizenship that 
I the people of the State responded so generously with contributions which made this 
| survey and Report possible. Not one cent of public funds was expended in this enter¬ 
prise seeking to improve public service in the State. Nor can any individual or large 
and strong economic group take credit for the undertaking. Let it be said to the credit 
of the good sense and the public spirit of the people of Oklahoma that so large a fund, 
$57,000, was voluntarily contributed in the interest of good government. 

Oklahomans contributed not only of their money but of their time in the further¬ 
ance of this good government enterprise. A great many citizens gave their time un¬ 
sparingly to the work necessary in raising funds in every community in the State. 
Citizens committees were named to make studies in the conditions and needs of the 
State in the fields of public welfare, education, financial control and the budget, taxa¬ 
tion, police and public safety, social security, conservation of resources, and industrial 
development. To the membership of these committees men and women were called from 
all vocations and walks of life. These committees worked in close cooperation with 
the Brookings staff and contributed much help in the investigations which support this 
Report. 

The usefulness of this Report is in no small part guaranteed for the reason that 
it has been financed from a state-wide, voluntary subscription. An added guarantee 
of its usefulness comes from the nature of the Report itself. The Brookings Institution 
was selected to do this important work for two reasons: First, the Institution has 
an established national reputation in the production of dependable governmental sur¬ 
veys; secondly, it was considered to be desirable to bring into the State an outside 
agency with a competent staff free from local bias or influence. Citizens of Oklahoma 
are appreciative of the earnestness and enthusiasm of Dr. A. B. Hall, Director of the 
Institute for Government Research of the Brookings Institution, who at great risk of 
his own health directed his able staff during the beginning weeks of the study. On be¬ 
half of the people of Oklahoma I take pride in recording that, irrespective of the diver¬ 
gent views among us as to the merits of particular recommendations, Oklahoma is 
grateful for the fine spirit and the scientific detachment exhibited by the entire Brook¬ 
ings staff through the period of the survey. 

It is not to be expected that all of us will agree with the findings and recommenda¬ 
tions in this Report. We can he certain, however, that they are not written with the 
view to favoring or opposing any person, group, faction, or party. In reading 
the Report we can see the problems and needs of the various aspects of our 
public service as impartial outside students and analysts see them. 

The Report recommends many changes, but they are changes which are consistent 
with the progressive spirit of the people of Oklahoma. Consider, for example, the 

(iii) 


IV 


FOREWORD 


I 

general recommendation for constitutional and statutory provision for a better integrated' 
state government and a better coordinated and unified educational system. The simpli¬ 
fication of our state government would result in fewer boards and departments, a | 
shorter ballot, and no doubt in better public services at lower cost. The Report calls at¬ 
tention to the need for a unified public welfare and health service. A thorough over¬ 
hauling of our law enforcement machinery is recommended in the interest of safety of 
life and property. The realization of these changes would contribute to bringing the 
public service in Oklahoma up to the standards already achieved in our business, in¬ 
dustrial, and agricultural activities. 

Emphasis on unification, coordination, and the locating of responsibility runs 
through the entire Report. There will probably be little difference of opinion as to the 
desirability of objectives sought in the recommendations. Views will vary regarding 
methods of attaining these objectives. All of us want better highways at the lowest 
possible cost. We desire that the State have an effective program of conservation of re¬ 
sources. Adequate and certain financial controls need to be set up in our state depart¬ 
ments and institutions. Many of us believe that the quality of local government ser¬ 
vices can be improved and at the same time costs of local government reduced. In 
modern government as well as in modern business it should be possible to find a way of 
providing a more permanent and efficient personnel than is possible under a political , 
patronage system. It is a regrettable fact that the personnel of many of the depart¬ 
ments of our State Government has been controlled by the Legislative Branch of the 
Government. Employees have been placed in these departments in the past without re¬ 
gard to their efficiency or aptness for the job they filled. Their only qualification was 
their ability to control a number of votes at Election time. 

Oklahoma has no one problem as important as that of building a sound and equit¬ 
able revenue system. This is a problem which affects in a very definite way the general 
welfare and also individual and corporate enterprise. In this Report we have the 
results of much careful thought on our tax situation. We can well afford to study 
carefully these recommendations which seek to lay out a course to follow in developing a 
sound tax system. 

Oklahoma deserves better government. If the people will they can have better 
government. The Report of the Brookings Institution can serve in a measure in chart¬ 
ing the course toward a more economical and a more effective public service from the 
State Capitol down to the smallest political subdivision. Sudden and marked departures 
from old ways of governing are not to be expected. Effecting desirable changes for the 
betterment of government in Oklahoma will be a process, working out through a long 
period of time. The Report, it is to be hoped, will be studied by all officials of the 
State and its political subdivisions and by candidates who aspire to serve the people in 
elective office. Citizens and voters who have an effective interest in good government 
will desire to become familiar with the findings and recommendations of the Report. 
May we consider the Report of the Brookings Institution as an investment by the 
people of Oklahoma in better government. I have confidence that the pioneering 
spirit of our people assures concrete returns from this investment through many years 
to come. 

E. W. MARLAND 

Governor of Oklahoma. 




LETTER OF TRANSMITTAL 


June 28, 1935. 

The Honorable E. W. Marl a nd, 

Governor of the State of Oklahoma, 

Oklahoma City, Oklahoma. 

Sir: 

I have the honor to submit herewith the report ou the financial and administrative 
survey of the State of Oklahoma made by the'Institute for Government Research of the 
Brookings Institution. 

The survey began in the latter part of November 1934. Under the terms of our 
contract it extended to the major administrative departments and activities of the 
state and county government. It included school districts but not cities and villages, 
and only incidentally touched upon the legislative and judicial branches of the govern¬ 
ment. Special attention was given to the organization and administration of the follow¬ 
ing public activities: Administrative brganzation in general, highways, education, 
libraries, labor regulation, land office, conservation of economic resources, law enforce¬ 
ment, public health, county executive and clerical staff, county finances, county con¬ 
solidation, public welfare, business regulation, financial administration, personnel ad¬ 
ministration, purchasing, election administration, and revenue and taxation. On the 
basis of these studies, suggestions and specific recommendations have been made. 
These are designed to point out commendable features, to remedy existing defects, to 
increase efficiency, and to reduce expenditures. 

In some instances the existing organization and practice of the government of 
Oklahoma have been described in detail to the end that the reader need not go outside 
of the report to visualize the existing situation to which the several recommendations 
arid findings pertain. In other cases the underlying reasoning and evidence have also 
been set forth at some length in order that the different suggestions submitted by the 
staff might be the more easily understood and evaluated by the public. This has added 
to the length of the report but it is hoped -that it has increased its usefulness. 

The survey was organized and initiated by the Director of the Institute for Govern¬ 
ment Research. Owing to illness, the Director was superseded early in January by Mr. 
Lewis Meriam, Acting Director of the Oklahoma Survey, who was in immediate charge 
Until late in March when he was followed by Dr. A. C. Millspaugh, Director of the 
Oklahoma Survey. The work of general editing and coordination has been done by 
Dr. Millspaugh as well as the preparation of the chapters on General Situation and 
Problems: The Chief Executive; Law Enforcement and Public Safety; Libraries and 
Related Agencies; Research, Planning, and Leadership; Administrative Organization 
and Reorganization; and the Summary. Mr. Lewis Meriam did the field work and 
wrote the chapters on Labor Administration: Commissioners of the Land Office; and 
Personnel Administration. He also made contributions to the chapters on General 
Situation and Problems and Research, Planning, and Leadership. Dr. Fred W. Powell 
prepared chapters on Business and Public Service Regulation, and Conservation and 
Development; he also made contributions to the chapter on Research, Planning, and 
Leadership. Mr. Henry P. Seidemann did the work and wrote the chapters dealing 
with State Financial Administration: Financial Conditions and Operations; and State 
Purchasing, Contracting, and Custody. The chapters on County Administration, County 
Financial Administration: and County Consolidation were done by Mr. Daniel T. Seiko. 

In addition to these members of the staff of the Brookings Institution, other special¬ 
ists assisted in the survey. Revenue and Taxation were studied by Dr. Herbert D. Simp¬ 
son, Professor of Public Finance at Northwestern University, who prepared the nine 
chapters dealing with those subjects. During the month of February he was assisted 
in his field work by Dr. .Tens P. Jensen, Professor of Economics at the University of 
Kansas. Dr. L. V. Cavins, of the State Department of Education of West Virginia, 
wrote the two chapters dealing with Public School Administration and the Institutions 
of Higher Education. The chapter on Public Welfare was written by Dr. Roy M. Brown, 
Professor of Public Welfare at the University of North Carolina, in consultation with 
Mr. Frank Bane, Director of the American Public Welfare Association. The Public 

(v) 


vi 


LETTER OF TRANSMITTAL 


Health chapter was the work of James G. Townsend, M. D., of the United States Public 
Health Service. Mr. Edward L. Middleton, of the Division of Subsistence Homesteads 
of the Department of the Interior, prepared the two chapters on State Highway Ad¬ 
ministration and Local Road Administration, while Professor Joseph P. Harris of the 
University of Washington contributed the chapter on Election Administration. 

Throughout the survey the staff has received the valuable assistance and counsel 
of different experts in the federal departments and of the officers of national associations 
dealing with special fields of administration. To the state and local administrative 
officials of Oklahoma, to the members of the legislature, to the heads of the'state public 
institutions, and particularly to the Governor, the staff wishes to acknowledge its in¬ 
debtedness for an ever-present spirit of friendly cooperation. Similar acknowledgment 
should be made to the Governor’s Advisory Committees, particularly those on Education, 
Revenue and Taxation, Financial Administration, and Public Welfare, who gave most 
generously of their time and energy. Likewise the staff is grateful to certain civic bodies 
and to private individuals for innumerable courtesies. The Chamber of Commerce of 
the State of Oklahoma made its unusual facilities available to the survey group, as did 
other organizations. 

When the Governor and the people of a great commonwealth set themselves con¬ 
sciously to the task of making their government and administration a more effective 
agency in the service of the people, it is a most inspiring and heartening event. The pos¬ 
sibilities of constructive civic achievement are tremendous. New vital energies may be 
released and the public interest quickened. The staff desires to express its gratitude 
for being permitted to participate in this significant venture. It has sought to bring 
to the people of Oklahoma its professional skill in the .analysis of public questions. It 
has laid before them the experience and experiments of sister states as they have con¬ 
tended with like or kindred difficulties. It has hoped to stimulate both popular and 
official interest by a series of specific suggestions and recommendations. Some of these 
suggestions may prove to be immediately available. Some may require long periods of 
discussion and delineation, while others may never receive popular acclaim.' Whether 
or not Oklahoma’s adventure yields maximum dividends of improved service must of 
necessity depend upon the civic intelligence and idealism of the people. In the last 
analysis it is their problem and their government. The result must be their victory or 
their defeat 

Respectfully submitted, 

Arnold Bennett Hall, 

Director, Institute for Government Re¬ 
search 

The Brookings Institution. 


CONTENTS 


Chapter Page 

Foreword _ iii 

Letter of Transmittal _ v 

PART I. INTRODUCTION 

I. GENERAL SITUATION AND PROBLEMS _ 3 

The State and Its People _*- 3 

Population _ 3 

Density _ 3 

Urban and Rural ___-_ 3 

Shifting of Population _ 4 

Indians -‘- 4 

Negroes _ 4 

Foreign-Born _-_ 4 

Literacy _ 4 

Industries _ 4 

The Body Politic _ 4 

Exploitation _ 4 

Public Morals _-_ 4 

A Frontier Democracy _ 5 

Local Units _:_ 5 

Public Opinion _ 5 

The Law _r__'_ 5 

The Constitution _•___:_ 6 

The Legislature ___:_ 6 

Statutes _ 8 

Legislative Reorganization Needed _ 8 

PART II. PUBLIC SERVICES 

II. THE CHIEF EXECUTIVE _ 11 

The Governor _•_ 11 

Functions _*_1___’_ 11 

Powers of Appointment_^_:_ 11 

Removals _’_ 13 

Vacancies _1---- 13 

Terms ____:_ 13 

Bi-partisanship_____^_;_ 14 

The Governor as an Ex-officio Board Member_:__ 14 

Is Executive Centralization Desirable? ___ 14 

Reporting _i_ 15 

The Lieutenant Governor _ 15 

The Secretary of State _ 15 

Licensing Boards _,_ 15 

The Adjutant General _ 16 

III. PUBLIC SCHOOL ADMINISTRATION _ 17 

' School Districts ___ 17 

Classification _ 17 

Enrollment and Holding Power _ 18 

Number and Size of Schools_ 19 

Number of High Schools _ 19 

Average Daily Attendance _ 20 

Public School Finance _ 21 

The District as a Unit of Taxation___ 22 

The County as the Unit of Taxation _ 23 

Need of a State Fund for Schools__ 25 

Purpose of a State Fund for Education _ 29 

Distribution of State Fund _ 29 

The Teacher-Pupil-Density Basis _. 30 

Consolidation of Schools _:__ 32 

Reorganization Surveys _ 32 

School Buildings _,__ 34 

Financing School Buildings _ 35 

(vii) 



























































viii 


CONTENTS 


Chapter 

State Organization and Administration- 

Elementary Sc-liool Supervision - 

High School Supervision - 

Research and Statistics - 

Buildings and Transportation - 

Vocational Education -1- 

Negro Education - 

Special Education - 

Teacher Training --- 

Administration and Public Relations - 

Personnel and Housing - 

Private and Parochial Schools- 

IV. HIGHER EDUCATION _ 

General Set-Up and Lay-Out - 

Effect of Distance on College Attendance- 

Why the Small College is Unsatisfactory- 

Standards for College Work __- 

Purpose of Senior College - 

Coordination, Unification, and Reorganization 

Size of Junior Colleges - 

Enrolments - 

Courses of Study - 

Majors in Commerce - 

Agriculture - 

Engineering _ 

Home Economics _ 

Pre-Law and Pre-Medicine _ 

Medicine _ 

Law __ 

Pharmacy _ 

Teacher-Training _ 

The Teachers College President- 

The Teaching Staff - 

The Training School _ 

The Student Body - 

Division of Field of Teacher Training- 

Training of Elementary Teachers_ 

Training of High School Teachers - 

Over-Supply of High School Teachers_ 

Training of Principals and Superintendents _ 

Costs - 

Student Fees - 

Cost of School Plant _ 

Cost of Instruction _ 

Appropriations _ 

Faculties - 

Personality in Teaching_ 

Organization of College Staff _ 

Number of Departments_ 

Salaries of Faculty Members _ 

Conclusions _ 


Page 

30 

36 

37 
_ 37 
_ 39 

40 
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44 
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48 
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_ 71 

_ 71 


V. PUBLIC WELFARE _ 

State Agencies _ 

Commissioner of Charities and Corrections _ 

State Board of Public Affairs_ 

Board of Managers of Children’s Institutions 

Board of Commissioners for the Blind_ 

Soldiers’ Relief Commission _ 

The Commissioner of Pensions _ 

Emergency Relief Administration _ 

Bureau of Pardon and Parole _ 

State Institutions _ 

Institutions for Dependent Children _ 

State Subsidies to Private Institutions_ 


73 

73 

73 

75 

76 
76 

76 

77 
77 

77 

78 

78 

79 


































































CONTEXTS 


xx 


Chapter Page 

State Institute for Deaf, Blind, and Orphans_ 80 

State Training School for Boys _ 80 

Industrial School for White Girls _ 80 

State Training School for Negro Boys _ 81 

Schools for the Blind and the Deaf_ 81 

Crippled Children’s Hospital _ 82 

Hospitals for the Insane _ 82 

State Institution for the Feeble-Minded ._ 83 

State Penitentiary _ 83 

State Reformatory _ 84 

Institutions for Veterans _ 85 

Veterans’ Tuberculosis Sanitarium _ 85 

Tuberculosis Sanatoria _ 85 

The University Hospital _ 85 

Local Public Welfare Activities _ - _ 86 

Relief _ 86 

Child Welfare _!_ 87 

Juvenile Court _ 87 

Truant Officers _ 88 

County Jail _ 88 

City and Town Welfare Activities _ 88 

Conclusions and Recommendations _ 89 

VI. LAW ENFORCEMENT AND PUBLIC SAFETY _ 97 

Apprehension and Detention _ 97 

Sheriffs _ 97 

Municipal Police Departments _ 99 

Constables _ 99 

State Bureau of Criminal Identification and Investigation _100 

Protection from Hazards and Accidents_100 

The State Fire Marshal _100 

Motor Vehicle Regulation _101 

Regulation _ 101 

Oil Inspectors _102 

Protection, Counsel, Representation, and Defense _102 

County Attorneys _102 

Coroners _103 

The Attorney General _<_103 

The State Bar _ _104 

The Law School of the University of Oklahoma_104 

Trial _104 

Prevention, Statistics, and Research_104 

Reorganization _106 

First Step _106 

Second Step _106 

Third Step - 106 

Fourth Step -107 

VII. PUBLIC HEALTH _108 

General Problems _108 

Functions and General Organization _108 

Appropriations _109 

General Morbidity and Mortality Rates -111 

The Oklahoma Indian _112 

Licensing Boards -1-113 

Personnel, Internal Organization, and Operations -113 

Personnel _113 

The State Laboratory-:-115 

Sanitary Engineering -.-115 

Foods and Drugs-117 

Bureau of Vital Statistics _117 

Bureau of Maternity and Infancy -117 

Local Health Service -118 

Venereal Disease Control - ,118 

Bureau of Epidemiology -11S 

Tuberculosis and State Institutions -119 

i 

































































X 


CONTENTS 


Chapter 

VIII. STATE HIGHWAY ADMINISTRATION _ 

Organization _ 

Statutory Set-Up _ 

Tenure of Commission _ 

General Powers and Duties_ 

Plans and Policies _ 

Planning _ 

Cost of Commission___ 

The Secretary _ 

The State Engineer _ 

Departmental Organization and Personnel 

Operating Results _ 

Work Accomplished _ 

Location and Type of Improvements_ 

Economy _ 

Construction Costs _ 

Design - 

Maintenance _ 

Highway Use _ 

Material Survey __ 

Revenues and Accounting __ 

Motor Vehicle License Fee __ _ 

Gasoline Tax Levies _ 

Financial and Operating Policies_ 

Highway Accounting _ 

Federal Aid _ 

Proposed Reorganization _ 

The Governor _ 

The Chief Engineer _ 

IX. LOCAL ROAD ADMINISTRATION _ 

County Highway Organization _ 

County Commissioners _ 

Duties of County Commissioners _ 

County Engineer _ 

Townships Abolished _ 

County Highway Finance _ 

Bond Issues _ 

Gasoline and Motor Vehicle Taxes_ 

Gross Production Tax _ • _ 

Ad Valorem Taxes _ 

Osage County __ 

Work on Roads in Lieu of Taxes _ 

Revenues Classified by Source_ 

Expenditures _ 

Operating Results _ 

County and Township Road Development_ 

Variation in County Road Development_ 

Distribution of Users’ Tax _ 

Diversions of Users’ Tax _ 

Administrative and Operative Procedure _ 

Administrative Organization _ 

General Operating Procedure _ 

Proposed Reorganization _ 

Functions of County Commissioners_ 

Functions of County Engineer_ 

Qualifications ___ 

Compensation of Engineers _ 

Tenure of Office _____ 


Page 

120 
120 

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121 
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122 
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148 

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149 

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150 
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150 

151 
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151 


X. CONSERVATION AND DEVELOPMENT _ir>3 

State Board of Agriculture_,_:_ 153 . 

Functions ______153 

Activities Relating to Animal Industry_,_153 

Activities Relating to Plant Industry _154 

Activities in Relation to the Bee Industry_155 


































































CONTENTS xi 

Chapter Page 

Activities in tlie Field of Chemistry_155 

Activities in the Field of Agricultural Economics_155 

Maintenance of Standards of Quantity and Quality_155 

Market Service _156 

Statistical Service _ 157 

Internal Organization _157 

Appropriations, Expenditures, and Receipts _158 

Publications _159 

Reorganization Proposals _159 

Advisory Board of the State Farm and Industrial Council_160 

State Advisory Board _160 

The Conservation Commission _160 

Functions _-_161 

Appropriations, Expenditures, and Receipts _161 

Internal Organization _162 

Reports _162 

Conclusions _:--162 

Oklahoma Forest Commission _162 

Functions -i_162 

Internal Organizations _ 162 

Appropriations and Expenditures ___163 

Reports - 163 

Game and Fish Commission _163 

Functions _163 

Activities _163 

Internal Organization _.-164 

Property _165 

Expenditures and Receipts _ 165 

Reports _165 

Oklahoma Geological Survey-_-165 

Location __ _ __— . -;-166 

Functions _166 

Internal Organization _.----166 

Appropriations and Expenditures -166 

Publications _ 166 

Cooperative Relations with the United States Bureau- of Mines_166 

General Conclusions and Recommendations -167 

XI. BUSINESS AND PUBLIC SERVICE REGULATION _169 

The Insurance Department _169 

Functions _ 169 

Insurance Commissioner’s Activities _ 169 

Activities of the Insurance Board - 170 

Activities of the Fraternal Insurance Board -171 

Internal Organization - 171 

Appropriations, Expenditures, and Receipts _: -171 

Reports _171 

Reorganization Proposed -»-172 

The Banking Department - 172 

Bank Commissioner -172 

Banking Board - 172 

Functions _173 

Activities of the Board - 373 

Joint Activities of Board and Commissioner_173 

Bank Commissioner’s Activities - 174 

Internal Organization -:—-175 

Proposed Reorganization - 175 

Appropriations, Expenditures, and Receipts -176 

Reports - 176 

The Building and Loan Board -176 

The Board - 176 

Functions *---—-177 

Activities of the Board-*-177 

Activities of the Bank Commissioner -177 

Reorganization Proposed -*-177 

































































xii 


CONTENTS 


Chapter Page 

Internal Organization -177 

Expenditures and Receipts -178 

Reports - 1J>8 

The Oklahoma Securities Commission -178 

Functions _178 

Control of Security Issues -178 

Control of Dealers and Salesmen--— 179 

Internal Organization ---179 

Appropriations, Expenditures, and Receipts -179 

Report -179 

Proposed Reorganization -179 

Secretary of State - 179 

The Corporation Commission _179 

Functions _180 

Activities _180 

Internal Organization _181 

Appropriations and Receipts _— 182 

Reports -183 

Appraisal of the Commission-—*-183 

XII. LABOR ADMINISTRATION _ 184 

The Department of Labor _184 

Appropriations and Expenditures -184 

The Free Employment Service _185 

Factory Inspection _186 

Bureau of Labor Statistics _186 

The State Board of Arbitration and Conciliation_186 

General Comments _186 

The Department of Mines _186 

Comments _187 

The State Industrial Commission_i_187 

Safety Work _188 

Lawyers’ Fees _189 

Medical Testimony _189 

Office Practice _189 

Quarters _ 189 

Statistics -190 

The State Insurance Fund _190 

Policies Written_191 

Finances _191 

Administrative Difficulties ___193 

Relations with Medical Profession _193 

Safety Work _194 

Payroll Auditing _ 194 

Quarters -194 

Division of Vocational Education, State Board of Education_195 

General Conclusions and Recommendations_,___195 

XIII. LIBRARIES AND RELATED AGENCIES _198 

The Oklahoma Library Commission _198 

Appropriations _198 

Internal Organization _ 198 

Functions _ 198 

Operations, Needs, and Results _198 

Oklahoma Historical Society _199 

> Appropriations _199 

Building _199 

Personnel _199 

Functions, Operations, and Results_199 

The State Library_?00 

Personnel _i_200 

Functions and Operations _ 200 

Proposed Reorganization _ 200 































































CONTENTS xiii 

Chapter Page 

XIY. COUNTY ADMINISTRATION _202 

Board of County Commissioners _202 

Selection _202 

Term _202 

Eligibility _202 

Bond _202 

Vacancies _202 

Functions _202 

Supervisory _ 202 

Financial _ 203 

Administrative _203 

Penal _203 

Cost _203 

Nature of Commissioners’ Duties _204 

Opportunities for Economy _204 

Utilization of Savings _205 

Opportunities for Further Economy _205 

Recommendations _205 

County Clerk _ 206 

As Register of Deeds _ 206 

Additional Functions _206 

Eligibility _206 

Present Personnel _206 

Required Qualifications _207 

Consolidation of Offices _207 

Cost _207 

Salaries _208 

Clerk Hire _208 

Supplies and Miscellaneous _208 

Fees _ 208 

Cost and Volume of Work ___209 

Reorganization _ 209 

Court Clerk __211 

Functions _211 

Personnel _211 

Results of Consolidation _212 

Cost _212 

Fees _212 

County Surveyor _213 

Duties _-_213 

Expense _214 

Public Weigher _215 

Functions _215 

PART III. FINANCIAL ADMINISTRATION 

XV. STATE FINANCIAL ADMINISTRATION _^_219 

Present Financial Structure _219 

The Governor _220 

The Budget Officer _220 

The State Treasurer _220 

Functions of Treasurer _221 

Organization and Cost of Treasurer’s Office _221 

Discussion of Treasurer’s Office _222 

The State Auditor __222 

Functions of Auditor_222 

Organization and Cost of Auditor’s Office _ 223 

Office Proper of State Auditor _224 

Pre-Audit Division _224 

Warrant Division _224 

Bookkeeping Division _225 

Discussion of Auditor’s Office -225 

State Examiner and Inspector _226 

Organization and Cost of Office of State Examiner and Inspector 226 
Discussion of State Examiner _227 































































XIV 


CONTENTS 


Chapter 


Page 

State Depository Board _228 

State Bond Commissioner _ 228 

State Fiscal Agency _228 

The State Board of Public Affairs_229 

Conclusions and .Recommendations _230 

Financial Procedure _232 

A State Budget System _ 233 

Present Budget System _234 

Constitutional Provisions for Money Bills _235 

Statutory Provisions Governing Budget Operations _237 

Present Budget Document _237 

Appraisal of Present Budget System _237 

Budget Law _ _ _238 

Constitution _1_241 

Budget Document _243 

Proposed Budget and Accounting Act _244 

Distinction Between Budget Document and Appropriation Bills 245 

Accounting and Reporting _248 

Present Accounting Procedure _250 

State Auditor’s Office _ 251 

State Treasurer’s Office _252 

Departmental Accounting _ 252 

Reporting Procedure __253 

Proposed System of Accounting and Reporting _ 254 

Classification of Accounts_•_254^ 

Central Control Accounting _255 

Budget Accounts _255 

Proprietary Accounts _ __ _257 

Reports _258 

Budget Statement of Fund Resources, Obligations, and Balances 258 

Statement of Realization of Revenue _ ; _258 

Cumulative Statement of Appropriations _258 

Statement of Appropriation and Allotment Operations _259 

Consolidated General Balance Sheet _ _259 

Consolidated Statement of Operations_ _ _259 

Sinking Fund Balance Sheets _ 259 

Statement of Sinking Funds Operations _259 

Statement of Bonded Debt _259 

Miscellaneous Statements _ _ _259 

Departmental Budget Accounting _260 

Departmental Appropriation Ledger _260 

Departmental Allotment Ledger __260 

Quarterly Report of Appropriation and Allotment Operations __ 261 

Monthly Schedule of Collections and Deposits _261 

Schedule of Disbursements _261 

Summary of Recommendations _261 

Collection and Custody of Public Funds _263 

Collections Through Counties _263 

School Moneys Collected by Land Office _ 263 - 

Moneys Collected by the State Tax Commission _263 

Federal Aid Grants Collected by the A. and M. College_264 

Miscellaneous Collections by Other State Agencies _265 

Conclusions and Recommendations _265 

Funding System _267 

Present Classification of Funds_ _ _;_267 

Proposed Classification of Funds _268 

Recommendations _:_270 

Disbursement of Public Funds _ 271 

Bonding of State Officers _272 

Debt Administration _273 

Authority of State to Incur Indebtedness__273 

Present Indebtedness _ 274 

Funded Debt _274 

Floating Debt _276 

Provisions for Liquidating Debt _276 
































































CONTENTS xv 

Chapter Page 

XVI. COMMISSIONERS OF THE LAND OFFICE _278 

Basic Law _278 

Common School Lands_’_278 

Higher Educational Institutions’ Lands _278 

Lands for Charitable and Penal Institutions and Public Buildings 279 

Other Important Statutory Law _280 

Union Graded or Consolidated School District Fund _280 

The Greer 13 Fund _280 

Home Loan Fund and Home Loan Guarantee Fund_280 

Receipts from Oil and Gas Resources _280 

The Trust Funds Enumerated _281 

Operations _281 

State Farm Loans _281 

Appraisals for Loans _ _282 

Loans to State Officials _282 

Collections and Disbursements ___283 

Extension of Time on Payments Due _283 

Financial Condition _283 

Activities and Organization _285 

Activities _285 

Organization _._286 

Comments and Recommendations _287 

Appraisals _287 

Help for Clients in Difficulty_28S 

Accounting and Auditing _288 

Quarters _289 

The Secretary of the Commission _289 

The Commissioners _289 

Foreclosures and Judgments _290 

Investments _290 

XVII. COUNTY FINANCIAL ADMINISTRATION _291 

State and Local Agencies_ 291 

The State Legislature _291 

Court of Tax Review_291 

State Examiner and Inspector _292 

Attorney General _ 292 

State Auditor _ 292 

State Treasurer _292 

State Depository Board -292 

Board of County Commissioners _293 

County Excise Board _ 293 

County Treasurer _ 294 

County Clerk _296 

Proposed County. Controller _296 

County Attorney _ 296 

Conclusions and Recommendations _! _296 

Financial Procedure _298 

Tax and Fiscal Calendars _298 

Classification of Funds _300 

Fixing the Tax Levies _301 

Proposed Budgeting Procedure ,_301 

Recommendations _302 

Execution of the Budget _302 

Accounting Procedure _302 

Internal Checks _303 

Treasurer’s Depository Accounts _303 

Investments _303 

Closing the Books _304 

Books and Records _ _ _._304 

Collection and Custody of Funds - -304 

Disbursement _304 

School Fund Transfers ___305 

Issue of Warrants _ 305 

Redemption of Warrants _ 305 

































































CONTENTS 


Chapter Page 

Reporting ---305 

Annual Financial Report -305 

Contents of Financial Statements -306 

Proposed Form of Report -306 

Other Financial Reports -307 

Printing, Notices, Advertising —-307 

Debt Administration - 307 

Nature and Extent of Bonded Indebtedness -30S 

Funding Bonds _308 

Judgments - 308 

Tax-rate Limitation _309 

Interest and Principal Requirements -309 

Redemption of Indebtedness -309 

Sinking Fund Management _309 

County Emergency Investment Fund-312, 

Purchasing _313 

XVIII. FINANCIAL CONDITIONS AND OPERATIONS -314 

Financial Statements -314 

Consolidated General Balance Sheet, Exhibit A -1-314 

Consolidated Statement of Operations for the Fiscal Year Ended 

June 30, 1934, Exhibit B _318 

Consolidated Comparative Statement of all Funds, Fiscal Years 

1933 and 1934, Exhibit C_321 

Condensed Statement of Receipts and Disbursements and Bal¬ 
ances of all Current Funds of the State Governments, Classi¬ 
fied by Treasury Accounts, Exhibit D -322 

Supporting Schedules -324 

Comparative Statement of Receipts of all Funds, Classified by 
Character and Sources, Fiscal Years Ended June 30, 1933 

and June 30, 1934, Schedule 1, Exhibit C -.- 1 -324 

Comparative Statement of Disbursements of all Funds for the 
Fiscal Years 1933 and 1934, Classified by Character, Func¬ 
tions, and Activities, Schedule 2, Exhibit C-324 

Conclusions _ 325 

XIX. STATE PURCHASING, CONTRACTING AND CUSTODY _339 

Purchasing and Contracting _339 

Purchases at the Seat of Government_339 

State Printing and Binding ___._340 

Board of Affairs Institutions _340 

Educational Institutions _341 

Highway Commission Purchases and Contracts ___342 

Revolving Fund Purchases _342 

Conclusions and Recommendations _342 

Custody of State Owned Property _•_343 

Organization and Personnel_344 

Conclusions and Recommendations _345 

PART IV. GENERAL ORGANIZATION AND BASIC CONTROLS 

XX. PERSONNEL ADMINISTRATION _349 

Oklahoma’s Present Needs_350 

Trained, Experienced, Efficient Employees _350 

Permanence of Tenure _351 

Abstention from Politics _352 

Modern Methods of Getting Efficient Employees _353 

Open Competition _353 

Impartial Judges _353 

Job Analysis _353 

Qualifications _354 

Tests _354 

Training of Employees _356 

The Public Service as a Career_ 356 

Firing Public Employees _357 

Statutory Recognition of the Merit Basis in Oklahoma--358 























































CONTENTS 


xvii 


Chapter Page 

Salary Control _359 

Job Titles _359 

Classification and Control _359 

Tfie Statutory Roll _360 

Tlie Salary Range _360 

Size of Salaries _361 

Salaries and Cost of Living_362 

Administration of a Modern Personnel System _ 363 

Associations of Employees _363 

The Schools _363 

Judicial Aspects _1_363 

Legislative Aspects _363 

Administrative Aspects _ 364 

The Board and Its Executive Officer _364 

Set-up of the Board_ 365 

The Chief Personnel Officer __ _ 365 

Retirement of Aged Employees _366 

Problems _366 

A Retirement System Not a Pension Plan_367 

Needed Provisions _ 367 

Recommendations _368 

XXI. COUNTY CONSOLIDATION _*370 

Elements of the Problem _370 

The Question of Size _370 

Optimum Present Size _370 

Location of the County Seat _371 

. Population and Taxable Wealth _371 

Consolidation and Tax Rates _371 

The Case for Consolidation _372 

Objections to County Consolidation _373 

Local Self-Government _373 

Equalization _373 

Temporary Effects __374 

County-City Consolidation _374 

Functional Consolidation_375 

Technical Features _375 

County Buildings _ 375 

Location of the Courts _375 

Court House and Jail _375 

County Debts _376 

County Highways _376 

Conclusions and Recommendations _ 376 

Partial Consolidation _376 

Need of Research and Planning_376 

XXII. ELECTION ADMINISTRATION _378 

Number of Elections _378 

Special Elections _379 

Registration _380 

Records _380 

Registration Officers _— 381 

The Time of Registration_382 

Correction of Registration Lists_,-382 

Transfer of Registration_383 

Signature at the Polls _384 

Challenges _384 

Election Officers _385 

Others Aspects of Organization and Procedure _386 

Voting Precincts _386 

Ballots _387 

Supplies, Polling Places, etc _387 

Hours of Elections _388 

Primary Election _ 388 

Absent Voting _388 

Presidential Electors _ 388 




































































/ 


Chapter Page 

XXIII. ADMINISTRATIVE ORGANIZATION AND REORGANIZATION-390 

The Chief Executive -390 

Licensing Boards - 390 

Public School Administration -390 

Higher Education _ ___391 

Public Welfare _392 

Law Enforcement and Public Safety -392 

Public Health _393 

Highway Administration -*-393 

Conservation and Development -393 

Business and Public Service Regulation-394 

Labor Administration- 395 

Libraries and Related Agencies -395 

County Executive and Clerical Agencies-395 

State Financial Administration -396 

State Purchasing, Contracting and Custody -396 

Commissioners of Land Office -397 

County Financial Administration -397 

Personnel Administration - • - j- -397 

Election Administration -397 

Planning, Research and Leadership -398 

Tax Administration --398 

State Agencies _399 

Local Agencies _400 

XXIV. RESEARCH, PLANNING, AND LEADERSHIP _401 

The Need of Planning _401 - 

Present Agencies _ -* -402 

The Legislature _402 

Legislative Reference Work _403 

Investigating Committees _ 403 

The Legislative Council _ 403 

The Governor _404 

The Code Commission_404 

Uniform Laws Commission _ 404 - 

Administrative Agencies _404 

The University _404 

The State Planning Board_405 

The Judicial Council _405 

A Proposed State Council _405 

PART V. THE REVENUE SYSTEM 

XXV. THE PEOPLE AND RESOURCES _409 

Population _409 

Urban Drift ___411 

Structure of Population _411 

Age Distribution _412 

Wealth and Income _413 

Volume of Production and Business _414 

Income _416 

Summary _416 

XXVI. THE OKLAHOMA CONSTITUTION _417 

General Powers _417 

Exemptions _417 

Uniformity _ 417 

Kinds of Taxes _417 

Special Assessments _417 

Debt _ 418 

State Board of Equalization _ 418 

Tax Limitation _418 

XXVII. DEVELOPMENT OF THE OKLAHOMA TAX SYSTEM _420 

XXVIII. A CROSS SECTION OF THE REVENUE SYSTEM _423 

A Ten-Year Perspective - 428 

Indebtedness _430 































































CONTENTS xix 

Chapter Page 

XXIX. AN ANALYSIS OF OKLAHOMA’S TAX SYSTEM_432 

Tax Bases _432 

Tlie Property Tax _433 

Proportion Represented by the Property Tax_433 

Tax Limitation _434 

Net Results ___434 

The System of Assessment _435 

County Assessors _435 

The County Board of Equalization _436 

The State Tax Commission _437 

The State Board of Equalization _437 

Railroad and Public Service Property _440 

Personal Property _441 

Chronology of Assessment _1_441 

Taxes on Production and Business _443 

Corporation License Tax _443 

Gross Production Taxes _443 

Motor Carrier Tax _443 

Gross Receipts Tax _443 

Taxes on Consumption _443 

Motor Vehicle License Tax _444 

The Gasoline Tax _444 

The Retail Sales Tax _445 

The Beverage Taxes _445 

Taxes on Distribution _445 

The Income Tax _445 

The Inheritance Tax _446 

XXX. AN APPRAISAL OF THE TAX SYSTEM_448 

General Features _448 

Constitutional Prohibition of State Levy on Property and Limi¬ 
tation of Local Rates _448 

The Constitutional State Board of Equalization_448 

A Misfit System _ 448 

Exploitation of State Government by Local Governments_449 

General Failure of Tax Administration _450 

Place of the State Tax Commission _451 

Appraisal of Particular Elements of the Tax System_452 

The Property Tax _452 

The Income Tax _453 

The Inheritance Tax _453 

Motor Vehicle License Tax _453 

The Gasoline Tax _ 454 

The Sales Tax _455 

Summary _455 

XXXI. THE EMERGENCY LEGISLATION OF 1935 _457 

The Cigarette Tax _459 

The Income Tax _459 

The Inheritance Tax _:_460 

Gross Production or Severance Taxes _461 

Miscellaneous Tax Legislation _461 

Remission of Penalties _ 461 

The Gasoline Tax—Agricultural Exemption _462 

The Sales Tax _462 

Ports of Entry _462 

Slot Machines _462 

Proposed Homestead Exemption Amendment _462 

General Character of Results _462 

XXXII. RECOMMENDATIONS ON TAX ADMINISTRATION _464 

The State Tax Commission -464 

Tenure of Members _465 

Tenure of Staff _465 

Research Division of the Tax Commission _465 































































XX 


CONTENTS 


Chapter Page 

Ad Valorem Assessment and Equalization -461? 

Supervision over Local Assessment _467 

Review and Equalization __467 

XXXIII. RECOMMENDATIONS ON TAX POLICY _469 

The Property Tax _469 

Homestead Exemption -469 

Timing of Property Tax Payments -476 

General Direction of State Tax Policy_477 

Forms of Taxation_478 

The Income Tax _478 

The Inheritance Tax _478 

Implication _480 

The Severance or Gross Production Taxes _480 

The Motor License Taxes _481 

Insurance Company Taxation _482 

Repeal of Tax Legislation _482 

Apportionment of Revenues to Local Governments _482 























PART I 

INTRODUCTION 



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REPORT ON A SURVEY OF 
ORGANIZATION AND ADMINISTRATION 
OF OKLAHOMA 


CHAPTER I 

GENERAL SITUATION AND PROBLEMS 

The present survey deals with public administration in Oklahoma, not including 
judicial and municipal administration. Emphasis is placed throughout this study on 
questions of organization. What the organization should be depends on a variety of 
consideration. Among the important factors to be considered are the functions to be 
performed, the relationships of one function to another, the technical or non-teehnical 
nature of activities and operations, the effectiveness or ineffectiveness of present 
agencies, and the availability of funds, which in turn depends on the amount and dis¬ 
tribution o<f taxable resources. These factors, and other similar ones which will be 
given attention in the subsequent chapters of this report, constitute immediate and di¬ 
rect influences. There are other conditions, however, which are .more remote and are 
often altogether lost' sight of, but which are of basic importance. Certain of these more 
basic conditioning factors will be taken up in this introductory chapter. 

Practically all of the conditions, favorable and unfavorable, that affect administra¬ 
tion and determine its organization, show one common characteristic: They are all 
more or less rapidly changing. Because of this fact, students ot administration no 
longer insist that there is any one simple form of organization that is equally suitable 
for all states, that is uniformly adapted to all fields of administration in the same state 
or that is permanently appropriate for any field of administration in any state at all 
times. In other words, administrative organization is experimental and evolutionary; 
and often progress jean best be made by making changes step by step. It may, indeed, be 
necessary, before any substantial improvement can be made, to deal, not with the more 
immediate aspects of administrative organization itself, but with certain of the under¬ 
lying forces that condition administration and the obstacles that block the way to good 
government. 

THE STATE AND ITS PEOPLE 

Oklahoma has a land area of 96,414 square miles, not much above the average 
area of the 48 states. There are 16 States larger; and 31 smaller. Oklahoma was ad¬ 
mitted to the Union on November 16, 1907. It is the youngest of the states. 

Population. The population of Oklahoma in 1930 was 2,396,040, not much below the 
average state population for the entire country. With respect to its population growth, 
however, Oklahoma is decidedly exceptional. Between 1900 and 1930, its population 
increased by over 200 per cent, a more rapid increase than any other state except 
Arizona and California. In case of Oklahoma, furthermore, much of the population 
growth was crowded into the decade 1900-1910, the increase in those years being from 
790,391 to 1,657,155. 

Density. Density of population in 1930 was 34.5 per square mile. The figure for 
the United States was 41.3. 

Urban and Rural. The population at the last census was 34.3 per cent urban. The 
percentage for the entire country was 56.2. In 1910, Oklahoma was about one-fifth 
urban; in 1920, about, one-fourth; and in 1930, over one-third. In the last census year 
about 40 per cent of the urban population of the state was concentrated in Oklahoma 
City and Tulsa. These cities have had a rapid growth. Oklahoma City grew from 
4,151 in 1890 to 185,389 in 1930. Between 1910 and 1930, its population almost tripled. 
Tulsa’s growth has been even more astonishing. In 1900, it numbered only 1,390 in¬ 
habitants ; but three decades later it had become a city of 141,25S. Its population 
almost doubled between 1920 and 1930. During the decade 1920-30, about 45 per cent 
of the entire population increase of the state went to these two cities. 


4 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


Shifting of Population. In the decade preceding 1930, population increased in 50 
counties and decreased in 27. An increase of 25 per cent or more occurred in 21 
counties; while four counties suffered a decrease of 25 per cent or more. These facts, 
together with changes in school enumerations and the remarkable increases in Oklahoma 
City and Tulsa, indicate that a considerable portion of the population of the state 
has been on the move. It is not .certain ;that the population of Oklahoma is internally 
more mobile and unstable than that of other states. Nevertheless, an intermittent shift¬ 
ing of the inhabitants of a state from one locality or one' industry to another is a fact 
which should be understood; and attention should be given to its economic, social, 
political, governmental, and administrative effects. 1 

Indians. Embracing the former Indian Territory, the State of Oklahoma was in 
its origin peculiarly identified with the Indian, his political experience, and his prob¬ 
lems. Of the 332,397“ Indians in the United States at the last census, 92.725 or about 
28 per cent jwere in Oklahoma, more than in any other state. 

Negroes. That Oklahoma, socially and economically, is not a typically southern 
state is indicated by the fact that in 1930 only 7.2 per cent of its population were 
colored. 

Foreign-Bom. On the other hand, only 1.3 per cent were foreign-born, compared 
with, a percentage of 12.3 for the country as a whole. 

Literacy. In 1930, Oklahoma, with a percentage of 97.2, ranked twenty-third among 
the states with respect to literacy. 

Industries. The industries of Oklahoma include agriculture, oil extraction, mining, 
lumbering, manufacturing, and commerce. Measured by the number of gainful work¬ 
ers, agriculture led in 1930 with a total of 300,140. Oil extraction was second with 
49,113; but the economic, social, and political importance of the petroleum industry to 
the state is probably greater than the total of gainful workers would indicate. 

THE BODY POLITIC 

The economic and social history of Oklahoma covers about 45 years. Within this 
comparatively brief time, the resources of the state have been acquired and apportioned 
and the'ir utilization, along with their exhaustion, has begun. The political history of 
Oklahoma, as a state, covers a still shorter period, only 18 years. 

Exploitation!. Accordingly, within the short span of a person’s adult life, Okla¬ 
homa has passed through the stages of settlement, community organization, population, 
growth, industrial development, and urbanization, which in many other states have oc¬ 
cupied periods ranging from 100 to 300 years. Oklahoma developed in a series of 
rushes—chiefly land rushes and oil rushes. This development has been more than 
rapid; it has; been at times and in places feverish. It seems to have been motivated 
predominantly by a desire! for property and profits. Speculative and exploitative, it has 
been essentially a get-rich-quick movement. A development of this sort necessarily 
absorbs the energies of a state’s citizenship. Those who win in such competition 
may become magnificent business successes; but they have little time for an interest 
in social and political leadership; because leadership of that kind offers meager mone¬ 
tary rewards. 

Public Morals. Unfortunately, the development of Oklahoma has been not only 
rapid and exploitative; but, largely, because of its nature, it has been, to say the least, 
far from elevating or inspiring. Conditions have been such as to place a premium on 
practices, which, because of their prevalence and profitableness, tended to fix, on a 
relatively low plane, the standards of public morality in the state. 

It is true that the conditions just mentioned are not peculiar to Oklahoma. They 
have appeared in every state and particularly in regions where industry and popula¬ 
tion are concentrated. But, at the time Oklahoma entered the Union, a movement for 
the regeneration of public morals had long been gathering strength. Notorious lapses 
have occurred in the federal government, in the states, and in the cities. Yet, it is 

’See C. Warren Thorntliwaite, Internal Migration in the United States. Pages 38 to 
51 deal specifically with Oklahoma. 



ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


5 

probably fair to say that the American people as a whole have become increasingly 
sensitive to governmental laxity, and that, in most states, civic leaders and private 
organizations are prepared to act promptly and effectively as spokesmen for the public 
conscience. ; 

A, Frontier Democracy. Due largely perhaps to its youth and to its preoccupation 
with economic exploitation, Oklahoma, socially and politically, is in many respects a 
frontier community, the kind of community that a hundred years ago was placing its 
stamp on our political institutions and governmental practices. Such a community, 
vigorous, individualistic, and self-confident, was typical of the Jacksonian era in Amer¬ 
ican political history. It was characterized by intense partisanship; loyalty to per¬ 
sonalities; localism; territorial decentralization in administration; attachment to local 
self government; checks and balances; legislative control of administration; distrust 
of the executive; numerous elective officers; rotation in office; and the spoils system. 
At that time, the work of government was inexpensive and non-technical; and admin¬ 
istrative amateurishness did no great damage. But the difficulty in Oklahoma is that 
frontier democracy coincides with a modern industrial system; and must cope with 
complex problems produced by rapidly changing economic conditions. Oklahoma isl 
advanced materially but retarded socially. It is economically developed but govern- 
mentally ‘immature. Its basic need js to catch up with itself, to overcome a political: 
lag that is probably more pronounced in this state than in most others. 

Local Units. In some directions, Oklahoma has already taken significant steps. 
With respect to the local units of administration, one finds a more favorable situation 
than in many other commonwealths. In the first place, traditions of “local self-gov¬ 
ernment,” largely meaningless today, are not buttressed and sanctified by the Constitu¬ 
tion. The (legislature is free to reorganize local units internally as modern conditions 
require. In the second place, while the state is subdivided into 77 counties, most of 
them are fairly large in area, considerably larger than the average for the United 
States. Finally, the townships have been abolished. On the liability side, however, 
Oklahoma has 4,836 separate school districts; and, throughout the field of local ad¬ 
ministration, one finds numerous elected officials doing purely clerical or technical 
work. The net result is that, in its local units, Oklahoma, like most of the other 
states, still has a fundamentally difficult problem, a problem that is complicated by 
feelings of vested interests and obscured by antiquated catchwords. 

Public Opinion. It is fortunate that the shortcomings in the development of the 
state, which have been previously referred to, are recognized by Oklahomans them¬ 
selves; and this recognition js, of course, an essential step toward solution of the 
problem. The situation is by no means peculiar to this state; and its existence and 
persistence cast no reflection on the character or capacity of individual Oklahomans. 
Their ability and initiative, however, must be developed, in much larger measure than 
at present, to the solution of their collective problems. Public opinion is now partly 
misdirected, partly inarticulate, and partly apathetic. It either does not know what 
it wants, wants too little, or fails to act. It lacks moral leadership. To a great extent 
it has failed to create unofficial agencies for the formation and expression of enlightened 
public opinion. / 

It may or may not be significant that in 1930 only about 50 per cent of the qualified 
electors of Oklahoma went to the polls and voted for gubernatorial candidates. This 
percentage of absentees , is about the same as in the United States as a whole. Okla¬ 
homa seems to rank low, however, with respect to the number and strength of its 
private associations. In modern democracy, the legislature can no longer serve as 
the sole agency for the representation of interests and ideas; nor can it fulfill adequately 
its original deliberative function. Discussion must be systematized and ideas mobilized 
outside the legislature; and the opinions of classes and groups must be organized along 
other than sectional lines. Unselfish leadership and non-partisan mobilization of opin¬ 
ion seem to be conditions precedent to administrative improvement. 

THE LAW 

Oklahoma, like other American states, has established a representative democracy. 


6 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


Naturally, administrative reorganization must be consistent with this fundamental 
fact, and must avoid forms and tendencies which are essentially dictatorial or un¬ 
duly centralizing. Yet. the governmental forms which are traditionally looked upon 
as democratic, lire worse than meaningless unless they actually realize in practice 
the democratic ideal. In order to function democratically, government must feel its 
responsibility to an enlightened public opinion; and it must, with reasonable prompt¬ 
ness, thoroughness, and effectiveness, deal with the problems that press upon it. The 
basic evidence of how government functions is found in the law and in the operations 
of those governmental organs that make the law. 

The Constitution. When the Constitution of Oklahoma was written and adopted, 
the country was on the eve of an administrative awakening. Two or three years later, 
states began to establish legislative and executive commissions for the purpose of 
reorganizing their administrative agencies. The universities and unofficial organiza¬ 
tions began to apply investigation and research to problems that had been previously 
neglected. From these studies and from the experience of states that attempted re¬ 
organization, two facts have come to light: First, that administrative organization 
must constantly adapt itself to changing conditions and that such adaptation is ex¬ 
tremely difficult and altogether too slow when administrative organization and ad¬ 
ministrative functions are unalterably'prescribed by the Constitution; and, second, for 
effective and economical lawmaking, as well as for effective and economical adminis¬ 
tration. the legislature must devote itself to the adoption of general policies and not 
to interference in the details cf administration. 

Still another fact was already sufficiently clear at the time Oklahoma established 
its Constitution; namely, that elected officials and politicians have essential and im¬ 
portant functions to perform but must be prevented from controlling, demoralizing, and 
corrupting the administrative services. 

A number of administrative agencies, elective or appointive, are frozen into Okla¬ 
homa's Constitution; and, in other respects, the document contains a mass of material 
which should have been left to the legislature or to administrative agencies. The Con¬ 
stitution, therefore, must be viewed as one of Oklahoma’s, fundamental problems; and, 
in some directions, no substantial progress can be made until constitutional obstacles 
have been removed. On the other hand, the failure of the constitutional convention 
and of subsequent legislatures to divorce politics from administration creates a doubt 
regarding the advisability of amending or revising the Constitution in accordance with 
any one general principle. Until public opinion and the legislature are prepared to 
insist on proper standards of administration, the Constitution will have to be used 
for tlie protection of certain agencies, which under different conditions should be 
provided for by statute. 

The Legislature. Ik Oklahoma, the legislature and individual legislators dominate 
in administration. They have far greater real power over administration than has 
the Governor or other elected officers of the state. The Constitution and the legislature 
determine in what activities the state shall engage. The administrative departments 
have'no authority to undertake any activity unless and until it is authorized by law. 
Not only does the law authorize the undertaking of an activity, it frequently specifies 
in great detail exactly how it shall be done, prescribing the exact procedure. The legis¬ 
lature. furthermore, appropriates the money which may be spent by the administrative 
agencies. Controlling the purse, it has the power to control administration. In the 
case of the Tax Commission, it appropriates a certain percentage of the revenue pro¬ 
duced by taxes for expenses of administration and leaves the details to the adminis¬ 
trators. The form of appropriation for the Highway Commission similarly leaves 
much discretion to the administrators. For most other departments, however, the leg¬ 
islature makes extremely detailed provision, specifying the title of each position and 
the exact salary that.shall be paid for that position. It often prescribes in the act 
establishing an agency, the duties and responsibilities of the higher positions, in some 
instances the qualifications which the appointees shall possess, and generally how the 
appointees shall be selected. It can, if it wishes, provide that the upper positions shall 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


7 


be tilled by tlie Governor, by and with the advice and consent of the Senate, giving to 
the members of that body substantial power to dictate appointments. 

In setting up the administrative organization, the legislature is in some respects 
limited by the Constitution; but many agencies are established to administer activities 
that were not in existence at the time the Constitution was framed and accordingly 
the Constitution does not come into the picture. Some agencies are set up to carry 
on activities that are closely related to other activities provided for by the Constitu¬ 
tion and by it placed under an elected constitutional officer. The legislature can choose 
whether it will place the new activities under the elected constitutional officer or 
whether it will place them under an independent agency, the head of which shall be 
appointed in the way the legislature directs. 

Under this system, an individual member of the legislature who occupies a strat¬ 
egic position, either because of his committee assignments or his personal following, 
can, if he wishes, exert a powerful, if not commanding, influence on executive and 
administrative officers. His own conscience is his only guide. Some legislators make 
little use of this personal power. A few use it to the limit. A legislator elected by 
a district calls on a constitutional officer elected by the whole people and tells the 
constitutional officer that he must dismiss an experienced, skilled and trusted em¬ 
ployee, performing duties that require long training and mature judgment, and appoint 
in his place a constituent of the legislator. The constitutional officer asks the legis¬ 
lator if his constituent has any training or experience for that particular work. The 
legislator replies that he can learn the work in six months. The constitutional officer 
declines to make the appointment, despite the legislator's warning that he will be 
sorry if he does not. When the appropriation for this department comes up, the con¬ 
stitutional officer is properly punished by having liis appropriation cut. The game 
can be worked the other way. The dominant legislator and the head of a department 
can enter into a gentlemen’s agreement that the legislator will endeavor to secure added 
appropriations for the department and that the head of the department In return 
will appoint to the new position thus authorized, the persons whom the legislator nom¬ 
inates. It is possible for a politically minded administrator to play this game whole¬ 
sale. In return for generous appropriations, he can give each legislator the personal 
privilege of naming his share of the employees. Apparently, the Highway Commission 
of Oklahoma has spent hundreds of thousands of dollars for unnecessary employees 
doing unnecessary things, because politicians wanted the patronage. 

According to the text books, the Governor and the elected constitutional officers 
are the heads of the executive departments. In practice, that is almost pure theory. 
They have the power and authority in so far as they play ball with the legislature 
and those individual members of the legislature :who wish to dictate in administrative 
matters. If they do not play ball, they have to fight for their power and authority; 
and the legislators ordinarily can use a larger variety of weapons. The real control 
of administration in Oklahoma is largely in the hands of the legislature. 

In the desperate emergency which confronted tire state in January 1933, when sub¬ 
jects of tremendous importance to the people of the state demanded the very best the 
Governor and the legislators had to give, the wheels of orderly procedure virtually 
ceased to turn, bogged down by an army of job hunters who thronged the Capitol de¬ 
manding to see their elected executives and their elected legislators. The number was 
estimated at from, 20 to 30 thousand; whereas the total number of positions in the 
service was in the neighborhood of 3.000. Because of lack of personal records and 
the fluctuating force in the Highway Department, it is difficult to determine at any 
time the actual number of state employees. Both Governor and legislators had to 
declare a public moratorium on patronage; but that did not materially affect what 
went on more or less behind the scenes. Patronage fights and feuds prevented the 
consideration of fundamental legislative problems on their merits. 

Improvement of legislation is quite as important as improvement of administration. 
Indeed, any substantial or enduring administrative progress must wait upon thorough¬ 
going reform in the organization, procedure, and attitude of the legislature. Neither 
legislative nor administrative progress can be expected, so long as pnniic opinion is 


8 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


apathetic toward present conditions. The existing situation puts squarely up to the 
people of Oklahoma the question of whether they want their government run as a 
political game; or whether they want it run to deliver expert and efficient service at 
a reasonable cost. They can have one or the other; hut no people has yet devised 
a method for getting both at the same time. In democracy, it is said, “The people 
can get the kind of government they want,” or again, “The people deserve the kind 
of government they get.” 

Statutes. The output of the legislature is, normally, the final test of legislative 
effectiveness. Effectiveness is assuredly lacking when desirable bills, for one reason 
or another, are not passed; when laws conflict; when obsolete provisions remain; and 
when codification does not result in a clear, unified, internally consistent and work¬ 
able system of law. When such tests are applied, the law of Oklahoma becomes sub¬ 
ject, to serious criticism. Legislative ineffectiveness in turn spreads waste throughout 
the entire administrative organization. In particular, it clogs the courts with needless 
litigation and thus creates unnecessary expense for individuals and the state. 

Legislative Reorganization Needed. It is not within the scope of this survey to 
study the legislature, fit is of interest in this report only in its relation to adminis¬ 
tration. From that point of view alone, it seems appropriate to suggest that the leg¬ 
islature should appoint an interim commission from its own membership which, with 
three or four of the leading members of the Bar or other citizens of the state, should 
be charged with making an exhaustive study of the organization, procedure, and out¬ 
put of the legislature. 


PART II 

PUBLIC SERVICES 





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CHAPTER li 

THE CHIEF EXECUTIVE 


The Constitution of Oklahoma vests the executive authority of the state in a 
Governor, Lieutenant Governor, Secretary of State, State Auditor, Attorney General, 
State Treasurer, Superintendent of Public Instruction, State Examiner and Inspector, 
Chief Mine Inspector, Commissioner of Labor, Commissioner of Charities and Correc¬ 
tions, Commissioner of Insurance, “and other officers provided by law and this Con¬ 
stitution.'' As will appear in succeeding chapters, additional officers and boards are 
provided by the Constitution; and numerous others have been established by statute 
laws. These officers, boards, and commissions, together with the courts, constitute the 
administrative branch of the government. The legislature, however, except as it is 
limited by the Constitution, possesses ultimate control over, and responsibility for, 
administration ; and the law-making body in practice exercises powers, as in the fixing 
of salaries and the confirmation of appointments, which are essentially administrative. 

THE GOVERNOR 

The Governor, according to the Constitution, must be a male citizen of the United 
States, not less than 30 years of age, and a qualified elector of the state for three 
years next preceding his election. He is elected, in the even-numbered years between 
presidential elections, for a four-year term beginning on the second Monday of Jan¬ 
uary following Ms election. He is removable only by impeachment; and is not eligible 
immediately to succeed himself. 

Oklahoma has done well to provide that the Governor and most of the other 
elective state officers shall be chosen midway between presidential elections; but the 
advisability of disqualifying the Governor from succeeding himself may be questioned. 
This is a matter that should be given careful consideration when, at some future time, 
a general revision of the Constitution is undertaken. There seems no doubt, however, 
regarding the desirability of a four-year term for the chief executive. 

Functions. As a part of the law-making branch of the government, the Governor 
has substantial power. He may also exercise great influence as a popular and party 
leader. As titular head of the state and official spokesman for it, he possesses a 
prestige that attaches to no other state office. He is given by the Constitution and 
the statutes numerous and varied administrative functions. Most of these are spe¬ 
cifically stated and relate to limited subjects. Few of his functions constitute any 
broad or general delegation of power. 

It is true that the Constitution declares that the “Supreme Executive power shall 
be vested in a Chief Magistrate, who shall be styled ‘The Governor of the State of 
Oklahoma’,” who is required to “cause the laws of the State to be faithfully executed.” 
Nevertheless, the Governor is not made the completely responsible directing and con¬ 
trolling head of the administrative organization. Ilis powers and duties are, for the 
most part, fragmentary. 

He is commander-in-chief of the militia, except when it is in the service of the- 
United States; and he may call out the militia to execute the laws, protect the public- 
health, suppress insurrection, and repel invasion. He has the power to reprieve, com¬ 
mute, pardon and parole, except in cases of Impeachment. He commissions all officers, 
not otherwise commissioned by law. He is authorized to offer rewards for the appre¬ 
hension of criminals. Numerous other powers and duties are given to him; and many 
of these will be referred to in succeeding chapters. 

Powers of Appointment. The Governor’s administrative position can best be under- 
* stood by noting the extent of his control, through appointment and removal, over 
the heads of administrative agencies. 

In Oklahoma, 16 state officers, in addition to the Governor and Lieutenant Gov¬ 
ernor, are elected. 1 The constitutional elective officers are the following: Attorney 


Mudicial officers are not included. 



12 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


General, Secretary of State, State Auditor, State Treasurer, State Examiner and In¬ 
spector, Superintendent of Public Instruction, Insurance Commissioner, the three mem¬ 
bers of the Corporation Commission, Commissioner of Charities and Corrections, Com¬ 
missioner of Labor, and Chief Mine Inspector. The statutory elective officers are: 
President of the State Board of Agriculture and four Assistant Mine Inspectors. Two 
other boards are elected: The Board of Governors of the State Bar, by the active 
members of the Bar; and the Board of Directors of the Historical Society, by the 
members of the Society. In addition, the following live boards and commissions are 
composed exclusively of elective officials: Board of Pardons; Commissioners of the 
Land Office (constitutional); the State Depository Board; the State Board of Equal¬ 
ization (constitutional) ; and the Board of Directors of the State Library. In the 
following three bodies, a majority of the members are ex-officio and elective, the Gov¬ 
ernor (when he is a member 1 ) and the appointive members being in a minority: Se¬ 
curities Commission, State Commission of Agricultural and Industrial Education; and 
Code Commission. The agencies headed by the above-mentioned officers and boards 
are clearly independent of direct control by the Governor. 

The following 26 officers and boards are appointed by the Governor, but only with 
the advice and consent of the Senate: Highway Commission, Insurance Board, 1 Frater¬ 
nal Insurance Board, 1 Banking Board, Building and Loan Board, Board of Public Af¬ 
fairs, Board of Chiropody, Board of Pharmacy, Election Board, Board of Education, 1 
Board of Regents of University of Oklahoma, Board of Regents of Oklahoma College 
for Women, 1 Board of Regents of Northeastern Oklahoma Junior College/ Board of 
Regents of Colored A. and N. College. 1 Coordinating Board, Budget Officer, State Board 
of Agriculture, 1 Conservation Commission, Flood Control Board, Game and Fish Com¬ 
mission, Board of Arbitration and Conciliation, Mining Board, Industrial Commission, 
Tax Commission, Adjutant General, and Fire Marshal. In the case of some of these 
latter appointments, there are other limitations on the Governor’s freedom of action, 
the most common one stipulating that the appointee shall be recommended, or selected 
from a ; list submitted by a private association. Such a stipulation applies, for ex¬ 
ample, to the Banking Board, thei Board of Pharmacy, and the Election Board. 

There are some other appointments, which do not require confirmation by the 
Senate but which must be made from nominations or lists submitted by private asso¬ 
ciations. Officers and boards so appointed include the Board of Dental Examiners, the 
Board of Embalming, the Board of Examiners of Nurses, the Soldiers’ Relief Commis¬ 
sion. and the Custodians of the three Memorial Halls. 

In the case of two or three boards, the make-up represents mixed systems of ap¬ 
pointment, but so arranged as in effect to neutralize wholly or partly the Governor’s 
control. Examples are Advisory Board of the State Farm and Industrial Council, the 
Forest Commission, and the Board of Arbitration and Conciliation. 

Tbe following lfi officers and boards are appointed or, in the case of boards, a 
majority of the members are appointed, by the Governor without confirmation by the 
Senate and without formal nomination or approval by any other body: The Library 
Commission, the Commissioner of Health, the Textbook Commission, the Board of 
Control (for military and physical training), the Board of Trustees (of the state 
teachers’ retirement fund), the Board of Regents of the Eastern Oklahoma College, 
the Board of Regents of the Oklahoma Military Academy, the Board of Commission¬ 
ers for the Promotion of Uniformity of Legislation, the Board of Accounting, the 
Board of Barber Examiners, the Board of Examiners' of Architects, the Board of Medical 
Examiners, the Board of Optometry, the Board of Osteopathy, the Board of Veterinary 
Medical Examiners, the Board of Commissioners for the Blind, the Commissioner of 
Pensions, the Pardon Attorney, and the Attorney for the Tax Commission. The Su¬ 
perintendent of the Bureau of Criminal Identification and Investigation Is appointed 
by the Adjutant General with the approval of the Governor;' but his appointment is 
in effect by the Governor alone. The above list of agencies which are, so far as con- 


1 A minority of the members of this board is ex-officio. 



ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


IS 


cerns appointment, set up so as to be under executive control, is possibly incomplete. 1 
But it is evident! that, even if it were made complete, it would not indicate that the) 
Governor of Oklahoma has any comprehensive appointing power or that, to any ex¬ 
tent, responsibility for appointments can be definitely traced to him. 

Removals. The Constitution prescribes that elective state officers are removable 
only by impeachment. The Board of Regents of the University, also, are understood 
to be subject to impeachment. With respect to such officers and boards, therefore, 
removal is a function of the legislature. The Governor is by law given power to re¬ 
move any officers appointed by him for incompetency, neglect of duty, or malfeasance 
in office; but specific provisions for removal apply to certain offices. Thus, he may 
remove at. pleasure the Adjutant General, the State Fire Marshal, the Pardon Attorney, 
the three Custodians, and the Superintendent of the Bureau of Criminal Identification 
and Investigation (in practice) ; all members of the Tax Commission, of several Boards 
of Regents, of the Board of Barber Examiners, and of the Board of Dental Examiners; 
and the appointive members of the Insurance Board, of the Banking Board, and of 
the Textbook Commission. A few other removals may be made by the Governor for 
cause, as in the case of the Board of Embalming and the Board of Veterinary Medical 
Examiners. He may remove members of the Industrial Commission only for cause 
anil after notice and hearing. 

The statute law provides, in addition, that any state, county, township, city, town, 
or other officer may be removed from office by judicial proceedings for any one of 
various specified causes, including habitual or wilful neglect of duty, gross partiality 
in office, corruption in office, wilful maladministration, failure to account for public 
funds, or any wilful failure or neglect diligently and faithfully to perform any legally 
imposed duty. In general, proceedings may be initiated by the grand jury, or by the 
Attorney General (when directed by the Governor) ; and trial must or may be by jury. 

Oklahoma, therefore, provides several methods of removal; one, legislative; others, 
executive; and others, judicial. Removal by impeachment is, with the exception of 
one or two of the more important) offices, clearly objectionable, because it imposes on 
an already overburdened legislature a purely administrative function, involving cum¬ 
brous and time-consuming procedure, and is liable to be used for political purposes. 
Removal by court proceedings is a ponderous, slow, and expensive procedure; and 
experience has shown that it is seldom used. 

Vacancies. All vacancies in state offices (except those connected with the legis¬ 
lature) and in boards of county commissioners are filled by the Governor. 

Terms. Elective state officers have four-year terms beginning and ending with the 
Governor’s. Members of the elective Corporation Commission have overlapping six- 
year terms. Likewise, terms of appointive officers are, in practically all cases, four 
years. A few officers serve without term, for example, the Adjutant General, the 
Superintendent of the Bureau of Criminal Identification and Investigation, and the 
Pardon Attorney. The terms of appointive members of state boards, when definitely 
fixed, range from two to seven years. The approximate number of boards for each 
term is shown below: 


Number of 
Boards 


6 

16 

(5 

6 

1 

11 


Length of term 
(In years) 

2 

3 

4 

5 

6 
7 

Without term 


In the case of several boards which have definite terms prescribed by law, the 
members serve until their successors are appointed and qualified. The practical effect 
of such a provision is that the members serve without term but are, after a fixed 
period, removable at the pleasure of the appointing authority. Overlapping or stag- 

J The recently established Flood Control Board and Planning Board are not included 
in this analysis. For discussion of these agencies, see succeeding chapters. 





14 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 

/ 

gered terms are provided for the members of about 23 boards. The usual purposes 
'in providing such terms are to make reasonably certain that at all times some of 
the members will be experienced, to assure stability and continuity of policy, and to 
protect administration against political interference and overturns. When terms are 
short, however, these purposes are not in full measure accomplished. As a matter 
of fact, any appointed (or predominantly appointed) board in the state government 
of Oklahoma may apparently be completely changed, or a majority of it may be 
changed, within a single gubernatorial term. 

Bi-partisanship. At least four of the state boards are made bi-partisan: The 
State Board of Public Affairs; the Soldiers’ Relief Commission; the State Election 
Board; and the Conservation Commission. 

lllne Governor as an Ex-officio Board Member. The Governor is an ex-officio mem¬ 
ber of at least eight boards: The Board of Equalization; the Depository Board; the 
Board of Regents of Eastern Oklahoma College; the Board of Regents of the Uni¬ 
versity Preparatory School and Junior College; the Board of Regents of Oklahoma 
Military Academy; the Commissioners of the Land Office; the Advisory Board of the 
State Farm and Industrial Council; and the Code Commission. 

Is Executive Centralization Desirable? Oklahoma, like other American common- 
wealths, divides or scatters authority and responsibility for appointments and re¬ 
movals. The Constitution makes it the duty of the legislature to “provide by law 
for the establishment and maintenance of an efficient system of checks and balances 
between the officers of the Executive Department, and all commissioners and super¬ 
intendents and boards of control of State Institutions, and all other officers entrusted 
with the collection, receipt, custody, or disbursement of the revenue or moneys of 
the State whatsoever.” In a sense, the checks and balances have been established and 
are being maintained; but that they constitute an “efficient system” is exceedingly 
doubtful. It is doubtful, indeed, whether any system, based on distrust can be made 
to operate efficiently. 

Division of the appointing power between the Governor and the Senate seems to 
have little to commend it. It has intensified political influence and fostered the spoils 
system; it has practically handed over numerous branches of administration to the 
control of members of the legislature; its effect on certain administrative agencies 
has been degrading, demoralizing, and disintegrating; and it has interfered with the 
proper performance by the legislature of its law-making function. 

In general, the practice of requiring appointments to be made with the adzhce and con¬ 
sent of the Senate is undesirable and should be discontinued. 

If the members of the Oklahoma legislature prove to be unselfish and courageous 
enough to eliminate this practice, they will have made a highly significant contribu¬ 
tion to the public service. 

it does not follow, however, that complete authority and responsibility over all 
administrative agencies should be centralized in the Governor. Political interferences 
and political overturns may com e from the Governor as frequently and as harmfully 
as from the legislature. Experience in those states which have tried a substantial 
measure of executive centralization does not indicate that it alone maintains stability, 
efficiency, or economy. The people of Oklahoma must insist, not merely in 1934 or in 
1940, but always on the nomination and election of a Governor who is primarily in¬ 
terested in effective and economical public service. The people must eventually es¬ 
tablish a tradition protecting technical services from prostitution to political and 
personal purposes. When that time comes, it will lie possible and desirable to elim¬ 
inate most of the elective officials and to reduce relatively the number of boards and 
commissions. But until that time comes Oklahoma will have to elect several admin¬ 
istrative officials, in addition to the Governor; and it will need to retain a compar¬ 
atively large number of boards and commissions, so constituted as to be in a measure 
independent of the Governor. 

What agency should be given immediate control in each field of administration, 
how this agency should be set up. and what its relation should be to the Governor, 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


15 


are questions that ean be answered only when each held of administration is intensively 
examined. The conclusions and recommendations derived from such specialized ex¬ 
aminations will appear in succeeding chapters of this report. 

Reporting. The Constitution provides that at each session of the legislature the 
Governor shall communicate a message dealing with the condition of the state “and 
shall recommend such matters to the legislature as lie shall judge expedient. He shall 
also transmit a copy to each House, of the full report of each State officer and State 
commission. He shall communicate, from time to time, such matters as he may elect 
or the Legislature may require.” 1 The Governor is also empowered to obtain informa¬ 
tion in writing at any time from any state officer, agency, or institution. 2 These simple 
constitutional and statutory provisions would probably be sufficient alone to enable 
the Governor to establish an adequate system of state official reporting. Such a system 
is essential. The effective functioning of democratic government depends on an en¬ 
lightened, as well as a conscientious, voting population; but the voters can not be 
enlightened unless they know the facts; and they can not know the facts unless officials 
are required to report periodically and promptly, with reasonable completeness and 
with absolute accuracy. 

In spite of the basic legal provisions mentioned above, the legislature has applied 
to the different agencies numerous stipulations relative to reporting. These have been 
enacted separately; they show little uniformity or plan; and, as a whole, they do not 
make mandatory an effective reporting system. Some agencies are required to report 
to the Governor annually; others, biennially. Some are called upon to report to both 
the Governor and the legislature. Monthly, quarterly, or semi-annual reports are in 
some cases prescribed. Some important agencies, such as the Highway Commission and 
the Bank Commissioner, are apparently not required to report at all. 

Different dates are stipulated for the submission of reports; but, as a matter of 
fact, there are two different times when reports are needed: At the beginning of a 
legislative session, and at the opening of a campaign for the election of state officers. 

All constitutional and statutory provisions relative to reports by specific ally-named 
agencies should be repealed. A single lazv covering the subject of reporting should be enacted, 
requiring reports to be submitted to the Governor semi-annually, as of December 31 atui June 
30. The subjects to be covered by each report should be specified by the Governor. 

THE LIEUTENANT GOVERNOR 

The Lieutenant Governor is primarily a legislative officer; but, as in most other 
states, he becomes Governor or acts as such when the latter’s office is vacant. 

THE SECRETARY OF STATE 

The Secretary of State, established by the Constitution and elected by the people 
for a four-year term, is a general secretarial officer. In addition to his clerical duties, 
he is anj ex-officio member of the Securities Commission and is one of the Commissioners 
of the Land Office. Recommendations made in succeeding chapters will, if adopted, 
relieve him of his ex-officio memberships. 

The Constitution should be amended to eliminate the Secretary of State as an elccthre 
official. He should be appointed without term and removable by the Governor. The State 
Election Board should be abolished 3 and its duties transferred to the Secretary of State. The 
functions of the Secretary of State relative to corporations should be transferred to the Bank 
Commissioner. 

LICENSING BOARDS 

Oklahoma law provides for the following special licensing boards: 

1. The State Board of Accounting, with three members, appointed for three-year over¬ 
lapping terms by the Governor with the advice and consent of the Senate; 

2. The Board of Examiners of Architects, with five members appointed by the Gover¬ 
nor for five-year overlapping terms ; 

’Const.. Art. VI, Sec. 9. 

2 Stat. 1931. Sec. 13550. 

3 See chapter dealing with Election Administration. 



16 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


3. The Board of Barber Examiners, a four-member body, appointed without term, three 
by the Governor and one by the Commissioner of Health ; 

4. The Board of Chiropody, consisting of three members appointed by the Governor 
and confirmed by the Senate for three-year overlapping terms; 

5. The Board of Chiropractic Examiners, having three members appointed by the Gov¬ 
ernor for overlapping three-year terms; 

6. The Board of Dental Examiners, with five members appointed by the Governor for 
five-year terms, some of the members being recommended by the State Dental Society ; 

7. The Board of Embalming, with three members serving three-year overlapping terms, 
appointed by the Governor on the recommendation of the Funeral Directors’ Association ; 

8. The Board of Medical Examiners, its seven members being appointed by the Gover¬ 
nor for terms of four years; 

9. The Board of Examiners of Nurses, composed of five members with three-year over¬ 
lapping terms, nominated by the State Nurses’ Association and appointed by the Governor: 

10. The Board of Optometry, consisting of three members appointed by the Governor 
for overlapping three-year terms 

11. The Board of Osteopathy, set up like the Board of Optometry ; 

12. The Board of Pharmacy, with five members serving overlapping four-year terms,*' ap¬ 
pointed by the Governor with the advice and consent of the Senate, on the recommendation 
of the professional association concerned ; 

13. The Board of Veterinary Medical Examiners, a five-member body with four-year 
overlapping terms, * 2 3 4 appointed by the Governor. 

14. The Board of Registration for Professional Engineers with five members serving 
overlapping five-year terms; and 

15. The Board of Cosmetology, consisting of three members having overlapping three- 
year terms. 

It. is believed that certain savings and some needed regularization and supervision 
might be brought about by providing for all of these boards a single secretarial office. 

All of the secretarial and clerical work pertaining to the licensing boards should be per¬ 
formed by the Director of Personnel.* In case a separate personnel agency should not be 
established, this work should be centralized in the office of the Secretary of State. 

THE ADJUTANT GENERAL 

The Adjutant General, who is in administrative charge of the National Guard, is 
appointed by the Governor by and with the advice and consent of the Senate, serves 
without term, and is removable by the Governor at pleasure. A state Adjutant Gen¬ 
eral’s office should be directly responsible to the Governor, its administration should 
be non-partisan, and it should maintain satisfactory working relationships with the 
federal War Department. In these and other respects, the Adjutant General’s office 
in Oklahoma seems to be, for the most part, properly set up and well conducted. 

When a general revision of the military code is made, it should proznde that the Adjutant 
General be appointed nnthout confirmation by the Senate. 


*Or until their successors are appointed and qualified. 

2 Or until their successors‘are appointed and qualified. 

3 0r until their successors are appointed and qualified. 

4 See chapter dealing with Personnel Administration. 

\ 



CHAPTER III 


PUBLIC SCHOOL ADMINISTRATION 

Equality of opportunity is tlie essence of democracy. The purpose of a public 
school system is, or should be, to guarantee to every child, regardless of the accident 
of birth, an equal opportunity to obtain whatever type of education is provided by the 
state. Such equality of opportunity implies that every child shall be enabled to attend 
school as many days as any other child, to x'eceive instruction from a well-trained 
teacher and in a suitable building, to be transported to school if the walking distance is 
too great, and to receive the kind of training that may reasonably be expected to make 
him a happy and useful member of society. 

For the administration of its public school system, Oklahoma has established the 
following agencies: 

1. The State Superintendent of Public Instruction, a constitutional officer, elected by 
the people for a four-year term and required to be a male citizen, not less than 30 years of 
age, and a qualified elector of the state for three years next preceding his election. 1 

2. The State Board of Education, required by the Constitution 2 but its composition and 
powers largely determined by statute, consisting of seven members, including the Superin¬ 
tendent of Public Instruction (President) and six members, appointed by the Governor with 
the advice and consent of the Senate for overlapping six-year terms. Two of the appointed 
members must be practical school men with four years’ experience (two in Oklahoma) in 
actual school work. 3 

3. The State Textbook Commission, composed of the Superintendent of Public In¬ 
struction (Secretary) and six other members appointed by the Governor for five-year terms 
and removable at his pleasure. Three members of this Commission must be actively engaged 
as educators in the public school system. 4 

4. The Board of Control (for military and physical training), provided by law but not 
functioning, consisting of five members appointed by the Governor and serving at his pleasure. 

5. The Board of Trustees (of the state teachers’ retirement and disability fund), com¬ 
posed of the Superintendent of Public Instruction, the State Treasurer, and three members 
appointed by the Governor for overlapping three-year terms. 

6. The State Board of Vocational Education, which is identical with the State Boai’d 
of Education. 

7. The county superintendents of public instruction, mentioned in the Constitution but 
in effect statutory, elected for a two-year term. Each superintendent is required to hold at 
the time of his election a county first grade certificate. 5 

S. The school district boards, provided by statute and elected by the people. 6 

SCHOOL DISTRICTS 

The school system of Oklahoma, in form of organization, is primarily the district 
unit system. Final authority is vested locally in boards of education, elected by the 
citizens of the respective districts. At, the present time there are 4,816 districts, with 
more than 15,000 members of school boards. In size the districts vary widely. In some 
instances, the district has but a single teacher; in others, it has as many as 3,000 
teachers. 

Classification. In Oklahoma, school districts are classified according to (1) type 
of administration and (2) type of centralization. Classified on the basis of adminis¬ 
tration, they are (a) independent; (b) dependent; or (c) minority (or separate.) 

An independent district Is one which contains a city of the first class or which 
contains an incorporated town or city and a fully accredited four-year high school. 
A district containing a city of the first class is an independent district whether it has a 

1 Const. Art. VI, Secs. I. 3. 4; Art. XIII. Sec. 5. 

2 Art. XIII, Sec. 5. 

s Stat. 1931. Sec. 6741. 

4 Laws. 1933, Chap. 84, Sec. 1. 

“Stat. 1931. Sec. 7767. 

®Stat. 1931, Secs. 6781-6939. 



* .. / * 

18 ORGANIZATION AND ADMINISTRATION OF OlfcLAHOMA 

high school or not. Independent districts vary in size from six teachers to more than 
1,000. Such districts have hoards of education consisting of three, four or more mem¬ 
bers depending upon whether they are merely incorporated towns and cities, or whether 
they are cities of the first class with varying charter provisions. These districts may 
or may not, at their discretion, use the county treasurer as their treasurer. 

Any districts (except separate school districts mentioned below) which do not 
meet the requirements for independent rating are called dependent school districts. 
All dependent school districts have three school board members and use the county 
treasurer as their treasurer. 

Every county in the state is a minority or separate school district. If an in¬ 
dependent or dependent district containing either a white or a negro board has within 
its boundary sufficient children of the opposite (minority) race, school facilities must 
be provided for these children. Such schools are called minority, or separate, schools. 
They are financed by a county-wide levy. If a minority school (not district) is located 
within boundary of an independent district, the law provides that it shall be under the 
control of the local board of education and superintendent of the district in which it 
is located. If a minority 1 school is located in a dependent district the law provides that 
it shall be under the control of the county superintendent and the county commissioners. 
Minority race children living in dependent districts may attend school in independent 
districts without the formality of being transferred and vice versa. To all intents 
and purposes, minority or separate schools are financed and administered on a county¬ 
wide basis and really constitute county units. 

Classified on the basis of centralization, a consolidated district is composed of a 
combination of two or more districts or parts of districts and contains one central 
school for all elementary and high school pupils. Consolidated districts are required 
to furnish transportation to all pupils living two miles or more from the school. A 
union graded district is composed of one or more districts in which there are a central 
school and one or more wing schools. The central school provides educational facilities 
for children in grades 1 to 6 and 7 to 12. The wing school provides educational 
facilities for children in grades 1 to 6 only. A union graded district may or may 
not provide transportation, depending on the vote of the people. Either an independent 
or a dependent district may also be consolidated or union graded. Thus we may have 
independent consolidated districts, dependent consolidated districts, independent union 
graded districts and dependent union graded districts. 

In case any one of the above kinds of school district is located in two or mere 
counties, It is called a joint district. Thus, for example, we may have a joint, inde¬ 
pendent consolidated school district. A joint district is under the jurisdiction of the 
county superintendent of the county in which most of the district is located. 

It is difficult to give a statistical summary of the number of districts of a given 
type; and, owing to the varying size of the districts, it is difficult to get a comprehensive 
view of the number of pupils involved in the different types of organization. The most 
significant fact about the organization of the school system is the number of inde¬ 
pendent and dependent districts. There are 38S independent districts and 4,428 de¬ 
pendent districts. Approximately 55 per cent of the total school enrollment is found 
in independent districts and 45 per cent in dependent. 

Enrollment and Holding Power. The enrollment by grades in white independent 
and dependent districts in 1933-34 was as follows: 


Independent Dependent 


Grades 

Number of 

Pupils 

Percentage of 

First Grade 

Number of 

Pupils 

Percentage of 
First Grade 

1 

44.856 


64,975 


2 

33.734 

75.2 

35,230 

54.2 

3 

33,331 

74.3 

37,029 

57.0 

4 

32,266 

71.9 

35,556 

54.7 

5 

30,902 

68.9 

31,845 

49.0 

6 

29,025 

64.7 

28,920 

44.5 

7 

26.856 

59.9 

25,560 

39.3 

8 

23,853 

53.2 

23,138 

35.6 

9 

28,623 

63.8 

9,022 

13.9 

10 

24,390 

54.4 

6,823 

10.5 

11 

19.807 

44.2 

5,268 

8.1 

12 

17,024 

38.0 

4,238 

6.5 






ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


19 


One of the tests of a good ischool system is its holding power, that is, the percentage 
of pupils that remain in school. From the percentage figures given above, it is evident 
that Oklahoma has two separate and distinct school systems so far as the educational 
opportunities of pupils are concerned. Pupils brought up in independent districts have 
one likelihood of continuing in school; those brought up in dependent districts another. 
Educators everywhere are coming to realize more and more the importance of the first 
school year Ignoring for the time being the probable differences in the kind of teach¬ 
ing in the first grade to be found in the independent and dependent districts and think¬ 
ing only of the number promoted to the second grade, we see at once a vast difference. 
In independent districts 75 per cent of the first grade enrolled is found in the second 
grade; whereas, in the dependent districts, only 54 per cent or slightly more than half 
of the first grade enrollment is found in the second grade. Although the first grade 
enrolls 64,975 pupils in dependent districts and only 44,S56 pupils in independent dis¬ 
tricts, by the time the pupils reach the seventh grade there are more pupils enrolled 
in independent districts than in dependent districts, and by the time they get to the 
twelfth grade there are 4,23S pupils enrolled in dependent districts, whereas there are 
17,024 pupils in independent districts. Of course, what has happened is. that by the time 
pupils arrive at high school age, the survivors, not always the fittest but those most 
able to continue their education, go to schools in independent districts. 

Number and Size of Schools. The table below ;sliows the number of schools in inde¬ 
pendent and! in dependent districts, classified according to the number of rooms in each 
school. 






Number of Rooms 







1 

2 

3 

4 5 6 

7 

8 

9 

10 or 










more 

Total 

Independent 

0 

0 

0 

0 9 22 

33 

20 

22 

289 

395 

Dependent 

313G 

1186 

IS 2 

60 81 74 

83 

56 

29 

58 

4945 


It is evident that the schools in independent districts are large schools whereas 
those in dependent districts are small. The contrast is so sharp that we are almost 
justified in saying that the schools in independent districts are graded, whereas, those 
in dependent districts are ungraded. There are 3,136 one-room schools in the dependent 
districts and 1,186 two-room schools. The teacher in a one-room school has on the 
average 28 different class recitations a day. In two-room schools there are on the 
average 22 class recitations a day. As a rule, teachers of the smaller schools have the 
least experience and the least professional training. 

The percentage of small schools in Oklahoma is unusually high. The principal rea¬ 
son seems to be that populous centers have formed independent school districts These 
districts have become independent of the schools in the territory surrounding these towns 
and villages and have made it difficult for rural schools to consolidate. The boundaries 
of independent districts have proved barriers to the formation of centers, which, for 
all purposes except schools, are the natural centers of social and economic life. Where 
the core of the community is fenced off for school purposes from the surrounding ter¬ 
ritory, there is little or no opportunity for the rural schools to consolidate. Oklahoma, 
apparently, has progressed about as far as it can until these artificial barriers in the 
form of district lines are removed. The most effective plan of doing this is to make 
the county the unit for school organization and administration. 

Number of High Schools. The effect of the small district and the exclusion of 
rural districts from urban centers is well illustrated in the number of high schools in 
Oklahoma. There are 864 high schools in Oklahoma, indicating a wide-spread desire 
upon the part of young people for a high school education. The zeal on the part of 
school officials to attempt to meet this demand is commendable. But a study of the ob¬ 
stacles to secure high school opportunities reveals that the road is unnecessarily difficult, 
the results exceedingly costly and thoroughly unsatisfactory. A review of the various 
kinds of districts such as “Consolidated Districts,” “Union Graded Districts,” and “Joint 
Districts” reveals that almost every conceivable effort has been made to get away from 






20 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


the small isolated school district form of organization. A mere reference to* the number 
of court decisions and opinions of attorney generals suggests that every one of these 
worthy efforts has met with obstinate opposition and legal barriers. When the way 
to the formation of natural logical social centers is made so difficult, if a progressively 
minded people wants to give its rural youth a high school education, there is but one 
thing to do, and that is to form these small enrollment high schools. A large number 
of them are housed in two or three poorly equipped rooms, often taught by teachers who 
are compelled to divide their time not only between several subjects, but also between 
elementary and secondary pupils. This lack of specialization in high schools we shall 
see later is reflected in the lack of specialization in institutions of higher education. 
The reason for this practice 'in Oklahoma is the large number of small districts and the 
exclusion of rural areas from the populous centers. 

The table below shows the number and percentage of high schools in 1933-34 ac¬ 
cording to the number of pupils enrolled. 


Number of Number of Percentage of 


Pupils 

Enrolled 

Schools 

Total Number 

560 

and over 

33 

3.8 

350 

to 

499 

15 

1.7 

250 

to 

349 

42 

4.9 

150 

to 

249 

94 

10.9 

100 

to 

149 

144 

16.7 

80 

to 

99 

85 

9.8 

60 

to 

79 

137 

15.9 

40' 

to 

59 

171 

>19.8 

30 

to 

39 

79 

9.1 

20 

to 

29 

45 

5.2 

0 

to 

19 

19 

2.2 


Total 864 100.0 


There are 19 high schools in the state having 19 or less pupils; 45 high schools 
have between 20 and 29 pupils in each; 79 have between 30 and 39 pupils; 171 have 
between 40 and 59 pupils; 137 have between GO and 79 pupils; 85 have between 80 and 
99 pupils. In other words, 536 high schools in Oklahoma out of a total of 864 have 
less than 100 pupils each. The conditions that prevail in these schools provide con¬ 
vincing evidence that the opportunities for a high school education are inadequate. 

Oklahoma has a number of excellent large high schools, though their number is 
comparatively small for a state the size of Oklahoma, only 33 having as many as 500 
pupils each. These schools would be a credit to any community or any state. The 
tragedy of the situation is that, with practically the same expense, all the schools of 
the state could be of the same standard, if it were not for the present form of or¬ 
ganization which makes It difficult to bring these pupils together in populous centers. 
This unnecessary inefficiency and waste, which has been going on for years, could easily 
be corrected by establishing the county as the unit of organization and control. 

In 1931-32, out of the 38 Class I accredited white high schools, 25 per cent had 
an average daily attendance of less than 12; 50 per cent, less than 17 ; -and 75 per cent, 
less than 23 pupils. Of the 259 Class II schools, 25 per cent had less than 31 pupils; 
50 per cent, less than 42; and 75 per cent, less than 65. Moreover, the per pupil cost 
of high schools is roughly ip inverse ratio to their average daily attendance. Thus, of 
the 38 Class I accredited white high schools, the annual cost of the medial pupil In 1931- 
'"^s $llo; but the cost per pupil in the 25 per cent with the lowest attendance was 
$135. In the Class III schools, the cost in schools having less than 59 pupils was $103; 
in those having up to 86 pupils, the cost was $72; while in those having up to 126 pupils, 
the cost was $66. For the state as a whole,the average cost was as follows: In schools 
having less than 34 pupils, $109; less than 70 pupils, $85; and less than 119 pupils, $68. 

Consideration of the opportunities offered in the first and fourth class schools makes 
it further evident that small high schools are extremely expensive. Finally, It Is not 
dear that a large! number of small high schools enables a larger number of pupils to 
attend high schools, for Oklahoma ranks 35th among the states in the percentage of 
the total school enrollment in high schools. 

A\erage Daily Attendance. An index to the efficiency of a school system is the 







ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


21 


percentage of enrollment in average daily attendance. Schools can serve only the pupils 
that attend. Applying this test in Oklahoma, it is necessary to return a vigorous in¬ 
dictment against the present school system. A thesis written by Mr. M. G. Starry of 
the graduate school at the University of Oklahoma, shows a high correlation between 
attendance and the size of schools. 1 

According to the last report issued by the United States Commissioner of Education, 
(we find a figure listing the percentage in attendance in each state. 2 In this list, Okla¬ 
homa ranks 48th or the lowest in the United States. The average for the nation is 
84.7 per cent; whereas Oklahoma’s average is 73.3 per cent. The following figures 
show what percentage the average daily attendance is of the enumeration and the total 
enrollment for the white children in the independent and in the rural districts of Okla¬ 
homa.' 



Independent 

Districts 

Rural 

Districts 

Per Cent of 
Enumeration 

Per Cent of 
Enrollment 

Per Cent of 
Enumeration 

Per Cent of 
Enrollment 

1929-30 

70.3 

75.9 

52.9 

61.1 

1930-31 

73.2 

78.4 

54.6 

65.1 

1931-32 

75.1 

78.8 

56.9 

67.2 


In the rural districts only 56.9 per cent of the pupils enumerated were in attend¬ 
ance in 1931-32, and only 67.2 per cent of the pupils enrolled were in attendance; but, 
In the independent districts, 75.1 per cent of those enumerated >were in attendance and 
78.8 per cent of those enrolled. Considering Oklahoma’s topography, climate, and high¬ 
ways, such a low rating is inexcusable. Evidently, some inherent weakness in the school 
organization itself produces these results. Apparently, a direct causal relation exists 
between the attendance figures and the unusually large proportion of one, two, three, 
four, and five-room schools and the large number of small high schools. As already 
stated, the small school districts, together with the large number of independent dis¬ 
tricts that exclude rural areas, largely account for the numerous one, two, and three- 
room elementary schools and the exceptionally large number of two, three, and four 
teacher high schools. 

Therefore, it is recommended that: 

The county should he made the unit for local school organisation and administration. 

All independent, dependent and all other units of school administration should be abolished. 

PUBLIC SCHOOL FINANCE 

The figures below give estimates, classified by sources, of school income for the year 
ending June 30, 1935. 

Federal Sources (Usual) : 

Indian Tuition _$ 377,396 

Vocational Education - 122,582 


Total _ 

State Sources _ 

County Sources: 

County Apportionment -- 234,795 

County Tax for Minority Schools - 1,073,399 


Total _ 

School District Sources: 

Ad Valorem Tax 


$ 499,978 

8,278,686 

1,308,194 

11,453,509 

$21,540,367 


*M. G. Starry, The Classification and Attendance of the Public School Children in Mc¬ 
Clain County, 1933, pp. 

J U. S. Commissioner of Education Bulletin No. 2, 1933, p. 9. 

"Data for this table are based on the Thirteenth and Fourteenth Biennial Reports of the 
Superintendent of Public Instruction, Oklahoma. M. G. Starry, The Classification and At¬ 
tendance of the Public School Children in McClain County, Oklahoma, 1933, p. 15. 





















22 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


Where complete reports are not in, the best possible estimate has been made, based 
usually on the amount for the previous year for the missing districts. Incomplete rec¬ 
ords are a serious handicap; but they are difficult to avoid when state officials are forced 
to secure reports from about 5.000 separate school districts under the control of over 
16.000 school board members, on each item that is called for in school accounting. The 
above figures reveal that the methods of financing the schools is to say the least com¬ 
plicated. 

What portions of the school revenue are derived from federal, state, county, and 
district sources? For the year 1933-34, federal funds contributed approximately 8 
per cent; the state, 26 per cent; the county, 6 per cent; and the local district, 60 per 
cent. In 1931-32, however, the state supplied only 6.7 per cent, the county 6 per cent, 

and the local districts 87.3 per cent. This shifting of support is in the right direction. 

The newer sources of taxation, more particularly the income and sales taxes, are coming 
to the relief of local property taxes in a substantial way. This is in line with general 
tendencies in other states; and Oklahoma is to be congratulated for bringing thia( change 
about so rapidly and in so orderly a manner. If the state continues to pursue this 
course, it will in all probability bring much needed relief to property owners without 
further constitutional limitations of levies. 

Data are not available from other states for the year 1933-34; but they are for 
1931-32. At that time, the national average contribution from the state was 19.5 per 
cent; from the county,~8.S per cent; and from the local district, 73.7 per’cent. Two 
years ago Oklahoma ranked 34th in the percentage of state support given to local schools. 
To have jumped from 6.7 per cent to 26 per cent in two years is an achievement of 
which the state may be proud. It is generally conceded, however, that education is 
a state-wide responsibility and as such should be supported on a state-wide basis. The 
fact that the local district is still assuming 60 per cent of school costs through ad valorem 
taxation suggests an examination of this method of supplying school revenue. 

The District as a Unit of Taxation. In order to evaluate the ability of the local 

district to support its schools, we need to examine the size of the various taxing dis¬ 

tricts and the assessed valuation of their property, as well as to consider tfie number 
of pupils in each district. Hence, we have taken a few typical counties and have com¬ 
pared the amount of taxable property in each district with the number of pupils to be 
educated. For Payne County, this comparison is made in the accompanying Table I 
and in Chart I. 

TABLE i 

NUMBER OF DOLLARS OF TAXABLE PROPERTY PER PUPIL IN 
EACH DISTRICT IN PAYNE COUNTY 


District 

Number 

Valuation per 
Enumerated 

Child 

District 

Number 

Valuation per 
Enumerated 

Child 

1 

$ 1,288 

48 

$26,970 

9 

1.910 

51 

8,504 


2,153 

52 

1.853 

4 

1,627 

53 

1,385 

5 

3,282 

56 

1,366 

6 

2,484 

58 

1.561 


* 2.088 

59 

712 

8 

1,824 

61 

678 

9 

2.206 

62 

3.321 

11 

2,092 

65 

2,185 

12 

1,670 

66 

1.507 

13 

1,251 

67 

1.158 

14 

974 

68 

1,929 

15 

1.583 

69 

1.095 

16 

1,650 

72 

1.141 

17 

1.792 

73 

1.209 

IS 

3 632 

82 

1.074 

19 

1,503 

S3 

1.170 

20 

' 1.097 

86 

3.628 

21 

2.325 

87 

1.455 

23 

1.992 

88 

831 

26 

1.661 

90 

2,350 

27 

1.822 

91 

2,498 

28 

1.280 

92 

1.813 

29 

1.261 

93 

2.074 






ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


23 


District 

Number 

Valuation per 
Enumerated 

Child 

District 

Number 

Valuation per 
Enumerated 

Child 

30 

1,576 

94 

720 

31 

2,042 

95 

720 

32 

1,340 

96 

880 

33 

1,529 

98 

14,222 

35 

1.508 

99 

929 

36 

1,897 

101 

1,400 

37 

903 

102 

9,003 

38 

1.074 

103 

1,343 

40 

1,973 

104 

5,751 

41 

2,803 

105 

2,259 

43 

2,805 

C2 

2,096 

44 

6,398 

C3 

1,191 

45 

1,294 

C4 

9,608 

46 

1,875 

C6 

25.527 

47 

6.041 

JC1 

1.515 


A great variation appears in the amount of wealth behind each pupil. One dis¬ 
trict has only $67S of taxable property back of each pupil; another, within the same 
county, contains $26,970 of taxable property for each child. In this latter district (Dis¬ 
trict No. 4S, Hillside School. Payne County) the assessed valuation is $1,456,393, the 
number of pupils of school age is 54, or $26,970 of taxable property for each child. The 
district has a two teacher school with excellent conditions so far as buildings and equip¬ 
ment are concerned. With a levy of 3.6 mills they have a school budget of $2,595.99. 
Consolidated District No.. 6 in Payne County has a valuation of $3,S63,54S and only 149 
pupils, or $25,527 per pupil. The levy is 2.7 mills and the total budget for school pur¬ 
poses is $11,277.25. The district furnishes a beautiful home for the superintendent on 
the school grounds. The equipment is complete in every respect. 

On the other hand. District No. 67 has a valuation of $3,219,587 with 2.7S0 pupils 
to be educated, or $1,158 of taxable property per pupil. This district has almost 20 
times as many pupils as District No. 98. Consequently, salaries are low, equipment in¬ 
adequate. and conditions generally poor. These are extreme cases, but they occur 
within the same county, and they are not the most extreme in that county. Another 
district in Payne County has slightly more than half as much wealth per pupil as Dis¬ 
trict No. 67. In another county, the variation in wealth per pupil is from one to 
one hundred sixty-eight. One could multiply these cases by the hundreds. But it is 
not necessary to do so; for it is perfectly clear that tHe variation of wealth among 
school districts is too great to make the district a dependable unit for the chief sup¬ 
port of the public schools. Since the ideal in school finance is to provide equal educa¬ 
tional opportunities on the basis of equal effort on the part of taxpayers, the district 
as a unit of taxation is open to severe criticism. 

The County as the Unit of Taxation. The effect of making the county the unit 
of taxation instead of the district will be a marked improvement with respect to equali¬ 
zation of effort, opportunity, and tax burden. The inequalities of ability to support 
governmental functions that are found among districts in the same county will dis¬ 
appear. If the tax levy is made uniform throughout the county, as it will be if the 
county is made the unit, the richer districts will help the poorer. This is the chief 
virtue of the county unit system in so far as school finance is concerned. It is in keep 
ing with the fundamental principle of equality of effort and is effective within the 
limits of the county. To carry out this principle in its entirety, we would have to 
make the state or even the nation the unit of taxation. But it is not proposed at this 
point to discuss tax policy or tax administration. It is intended only to show what effect 
making the county the unit will have on raising school revenue. Here again our method 
of studying the ability of a given district or county to support its educational program 
is to compare the various units on the basis of this number of dollars of taxable prop¬ 
erty back of each child to be educated. This is done in Table II. 





24 ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


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SCHOOL DISTRICTS 





















ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


25 


TABLE II 

NUMBER OF DOLLARS OF TAXABLE PROPERTY FOR EACH 
ENUMERATED PUPIL IN EACH COUNTY 


Name of County 

Number of Dollars 
Per Pupil 

Name of County 

Number of Dollars 
Per Pupil 

MeCurtaia 

$ 520 

Grady 

$1,387 

Sequoyah 

604 

Carter 

1,388 

Adair 

611 

Beckham 

1,418 

Delaware 

655 

Nowata 

1,468 

Cherokee 

65T 

Cleveland 

1,483 

Haskell 

673 

Blaine 

1,542 

McIntosh 

708 

Muskogee 

1,566 

Marshall 

752 

Seminole 

1,567 

Pushmataha 

806 

Kiowa 

1,590 

Choctaw 

843 

Rogers 

1,642 

LeFlore 

892 

Custer 

1,721 

Atoka 

895 

Lincoln 

1,774 

Hughes 

906 

Mayes 

1,791 

Latimer 

961 

Pawnee 

1,903 

Bryan 

968 

Canadian 

1,944 

McClain 

970 

Crain 

2,047 

Coal 

1,008 

Logan 

2,061 

Pittsburg 

1,011 

Harper 

2,131 

Caddo 

1,023 

Payne 

2,270 

Okfuskee 

1,039 

Osage 

2,302 

Ottawa 

1.106 

Major 

2,340 

Greer 

1,124 

Ellis 

2,482 

Stephens 

1,124 

Noble 

2,536 

Cotton 

1,144 

Oklahoma 

2,560 

Love 

1,152 

Kingfisher 

2,621 

Comanche 

1,164 

Tulsa 

2,631 

Jackson 

1.172 

Woods 

2,690 

Pontotoc 

1,172 

Woodward 

2,711 

Roger Mills 

1,176 

Kay 

2,944 

Wagoner 

1,179 

Garfield 

2,978 

Garvin 

1.208 

Beaver 

3,021 

•Johnson 

1,235 

Washington 

3,117 

Harmon 

1,259 

Alfalfa 

3,487 

Okmulgee 

1,263 

Texas 

3,932 

Washita 

1,284 

Cimarron 

4.283 

Dewey 

1.290 

Grant 

4,287 

Creek 

1,292 



Jefferson 

1,352 



Murray 

1,371 



Pottawatomie 

1,371 




Table II lists tbe counties of the state according to their ability to support educa¬ 
tion. It reveals clearly that the county goes a long way toward reducing the inequalities, 
so glaring in the districts. The reader will recall that the range in the wealth per pupil 
in the districts of a single county was from $678 to $26,970, or 1 to 40; whereas, the 
range in various counties is from $520 to $4,287, or l to 8. This, it must be remembered, 
is the range existing between extreme cases. The range of the middle 50 per cent, 
which is for most purposes a more dependable measure of variability, is from $1,023 
per pupil to $'2,131. or of approximately 1 to 2. Although the county unit will greatly 
reduce the outstanding inequalities of the district system, as long as the average variation 
is from l to 2, it is obvious that the county unit will not completely equalize the burden 
of school support. If there is to be real equality of educational opportunity, the state 
must step in and assume the responsibility of support. Hence, it appears that the 
county should be used, so far as it 1 is able to equalize the burden within its limits, 
and that the state must be called upon to complete the task of equalization among the 
counties. This is about the only way in which a sound financial basis can be established 
for the support of public education. 

The county should be made the basis of taxation for school purposes. 

Need of a State Fund for Scliools. This idea of state aid is not new to the people 
of Oklahoma. For the last year or so at least, Oklahoma has been distributing to local 







26 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


districts about eight or nine million, dollars annually. The purpose of this distribution 
has been to reduce ad valorem taxes. Seventy-five per cent of the income tax, and 50 
per cent of the sales tax has been distributed to the several districts on the per census 
child basis with the understanding that it go to reduce the local levy. Although the 
motive back of the tax substitute plan is commendable, it does not operate to equalize 
effort on the part of local districts. In fact, it lmsf quite the opposite effect. Taking 
Adair County, for example, we can see that the result of the present law is to make 
the levies actually laid very unequal. There are a number of factors that bring this 
about. First, the wealth of the districts varies markedly; second, the number of chil¬ 
dren to be educated varies, hence any allocation on the basis of pupils will vary ; and 
finally, there is a marked difference in the educational offerings in the different districts. 
Hence, it is little wonder that the ultimate result of the three variables is a decidedly 
unequal rate. There is still a fourth possibility that the districts do not vote the same 
levy to begin with. However, in order to secure state aid from the equalization fund, 
districts are compelled to vote the maximum levy Of 15 mills. Table III gives us the 
rate of levy laid by the districts of Adair County. 

TABLE III 

LEVIES LAID IN ADAIR COUNTY, 1934-35 



Number of 

Mills 


Number of Mills 

District Numbers 

Actually Levied 

District Numbers 

Actually Levied 

1 

6.4 


21 

2.0 

2 

9.2 


22 

8.8 

3 

9.9 


23 

3.5 

4 

11.3 


24 

none 

5 

none 


25 

9.6 

6 

6.9 


26 

none 

7 

7.3 


27 

1.6 

8 

8.2 


28 

10.2 

9 

12.2 


29 

10.0 

10 

10.8 


31 

10.2 

11 

12.1 


32 

none 

12 

8.9 


33 

none 

13 

7.8 


34 

4.8 

14 

5.2 


35 

none 

15 

1.0 


36 

none 

16 

7.3 


37 

11.5 

17 

12.5 


38 

none 

18 

none 


39 

none 

19 

5.9 


40 

1.2 

20 

8.5 


41 

12.6 

In Adair County, 

ten districts 

under 

the present laws do not levy anything what- 

soever, there are four 

more that levy two 

mills or less: whereas, 

there are ten districts 

that levy ten mills or 

more, and four that 

levy more than twelve 

mills. Hence, we see 


that some districts escape entirely, whereas, others lay almost the maximum levy. 

This matter is of such vital importance that, we should not conclude from a single 


county. For this reason we are presenting in Tables IV and V the facts regarding the 
levies actually laid during the present year in every district in the state. 

TABLE IV 

MILL LEVIES IN OKLAHOMA SCHOOL DISTRICTS. 1934-35 1 
Stale Average (Mean) Levy 10.07 Mills 


1934-35 Levy Number of Districts 

(Mills) Making Levy 


15 2 _ 35 

14 _ 82 

13 _ 308 

12 _ 400 


“Table is read as follows : Beginning at the top, 35 schools made an actual levy of 15 
mills, 82 districts spread a 14 mill levy. 308 districts spread a 13 mill levy, etc.; 304 dis¬ 
tricts which had'budgets made no levy at all. This condition is chiefly due to the method 
of distribution of the sales and income tax. It is distributed on a per capita basis. 

“14.5 mills to 15.4 mills. 














ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 




1934-35 Lew 
(Mills) 


Number of Districts 
Making Levy 


11 466 

10 _:_ 438 

9 _ 387 

8 _ 311 

7 305 

6 _ 345 

5 _ 322 

4 __ 337 

3 _ 311 

2 _ 245 

l* _ 200 

0 _ 304 


Total _4,796 


TABLE V 


DISTRIBUTION OF MILL LEVIES BY COUNTY, 1934-35- 


County 






Number 

of Districts 

M; 

'.king 

Each 

Levy 





Total 

15 

14 

13 

12 

11 

10 

9 

8 

7 

6 

5 

4 

3 

2 

1 

0 

Adair 




2 

3 

2 

5 

3 

3 

3 

2 

2 

1 


2. 

2 

10 

40 

Alfalfa 


2 

1 

in 

3 

i> 

5 

4 

1 

3 

4 

7 

14 

7 

7 

3 

2 

76 

Atoka 



2 

3 

9 

7 

6 

5 

3 

7 

2 

4 

4 

2 

1 

5 

_ 

60 

Beaver 


_ 

2 

12 

19 

9 

12 

5 

6 

7 

10 

6 

4 

i 

2 

_ 

* _ 

95 

Beckham 


— 

— 

1 

7 

7 

10 


3 

i 

6 

1 


3 




41 

Blaine 




2 

2 

ti 

4 

6 

10 

5 

5 

6 

3 

2 

7 

4 

5 

72 

Bryan 


_ , 



5 

9 

10 

9 

9 

11 

5 

5 

3 

i 

_ 

2 

2 

71 

Caddo 




i 

3 

6 

8 

11 

6 

4 

5 

11 

4 

10 

7 

7 

21 

104 

Canadian 



_ 

i 

4 

4 

4 

1 

6 

5 

4 

10 

16 

7 

8 

10 

1 

81 

Carter 


— 

3 

8 

13 

8 

8 

7 

4 

1 

1 







53 

Cherokee 


18 


5 




2 

I 

2 

5 

1 

3 

5 

4 

5 

24 

77 

Choctaw 



i 

1 

4 

13 

s 

2 

2 

5 

2 

3 

1 

_ 

2 

2 

3 

49 

Cimarron 


1 


2 

4 

O 

1 

3 

<4 

1 

4 

4 

3 

4 

_ 

_ 

3 

34 

Cleveland 




5 

2 

11 

8 

7 

6 

5 

4 

2 

3 

3 

3 

2 

— 

61 

Coal 


— 

— 

— 

i 

4 

11 

2 

7 

1 

2 

9 

4 

2 

2 

— 

— 

38 

Comanche 




3 

3 

6 

5 

3 

3 

8 

6 

4 

5 

8 

5 

4 

4 

67 

Cotton 




1 

11 

9 

7 

4 

6 

4 

1 

5 

3 

3 

2 

_ 

_ 

56 

Craig 




1 

1 

1 

2 


4 

3 

4 

8 

8 

c> 

13 

8 

15 

73 

Creek 




2 

10 

11 

H 

8 

8 

3 

5 

5 

_ 

2 

2 

1 

_ 

68 

Custer 


— 

— 

i 

7 

-- 

13 

— 

2 

6 

7 

8 

7 

6 

5 

— 

5 

67 

Delaware 






3 


3 

3 

5 

7 

7 

4 

6 

4 

3 

28 

73 

Dewey 




3 

10 

10 

19 

5 

5 

o 

O 

_ 

i 

5 

1 

1 

1 

4 

68 

Ellis 

f 



6 

6 

12 

6 

7 

4 

7 

3 

3 

5 

5 

3 

4 

_ 

71 

Garfield 



~i 

5 

2 

3 

3 

i 

5 

11 

9 

8 

10 

15 

14 

11 

4 

108 

Garvin 


— 

i 

7 

14 

13 

14 

A 

2 

1 

3 

4 

— 

1 

— 

— 

1 

64 

Grady 




3 

9 

8 

11 

12 

7 

3 

4 

6 

6 

1 

4 

2 

_ 

76 

Grant 


1 

2 

4 

2 

1 

3 

1 

4 ' 

8 

13 

17 

20 

18 

8 

7 

2 

111 

Greer 


2 

3 

7 

7 

_ 

4 

_ 

_ 

2 







3 

28 

Harmon 




1 

6 

1 

4 

2 

1 

_ 

4 





2 

— 

21 

Harper 


i 

5 

15 

8 

1 

2 

7 

9 

3 

2 

— 

— 

1 

1 

— 

9 

57 

Haskell 




1 

0 

7 

10 

6 

9 

o 

O 

6 

1 

2 

2 

_ 

_ 

2 

58 

Hughes 




5 

7 

8 

7 

9 

1 

5 

1 

1 

4 





51 

Jackson 




in 

6 

9 

2 

_ 

1 








2 

30 

Jefferson 





4 

3 


7 

1 

O 

2 

3 

2 

2 

1 

4 

1 

34 

•Tohnsfon 


— 

— 

4 

3 

15 

•> 

4 

2 

o 

3 

2 






38 

Kay 



1 

7 

3 

4 

;> 

8 

r> 

8 

14 

19 

ii 

16 




101 

Kingfisher 




5 

2 

3 

4 

3 

4 

8 

8 

14 

n 

6 

6 

7 

1 

82 

Kiowa 




1 

9 

6 

2 

j 

2 

5 

4 

4 

6 

9 

3 

2 

l 

61 

Latimer 



_ 

7 

4 

6 

7 

6 

i 

1 

1 

_ 


i 

— 

i 

3 

38 

LeFiore 


— 

— 

4 

9 

12 

n 

15 

5 

8 

6 

10 

6 

3 

2 

— 

3 

94 

Lincoln 




2 


6 

7 

4 

6 

8 

15 

9 

13 

19 

12 

10 

14 

125 

Logan 


_ 

_ 

I 

I 

2 

3 

4 

3 

2 

5 

ii 

7 

10 

15 

7 

7 

78 


Mncludes 41 districts levying .01 to .40 mills. 

2 Table is read as follows : Adair County had two districts levying thirteen mflls, three 
districts levying twelve mills, two districts levying eleven mills, etc., ten districts do not make 
any mill levy at all this year. The mill levy for 40 school districts in the county are included 
in this report. 
































28 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 







Number 

of Districts 

Making 

Each 

Levy 






County 

15 

14 

13 

12 

11 

10 

9 

8 

7 

6 

5. 

4 

3 

2 

l 

0 

Total 

Love 

6 

4 

5 

3 

3 

2 










2 

25 

McClaia 





4 

6 

6 

6 

1 

11 

5 

1 

1 

— 

— 

1 

42 

MeCurtain 




7 

6 

10 

3 

3 

3 

7 

5 

1 

6 

4 

3 

11 

69 

McIntosh 



1 

4 

G 

3 

5 

6 

6 

2 

2 

4 

2 

3 

1 

2 

47 

Major 


1 

6 

8 

9 

9 

3 

5 

G 

2 

5 

11 

11 

7 

2 

2 

87 

Marshall 


1 

6 

9 

6 

5 

2 

2 

2 

3 

1 

1 




1 

39 

Mayes 


1 

2 

__ „ 

2 

2 

2 

5 

4 

7 

G 

9 

4 

7 

6 

9 

66 

Murray 

— 

— 

2 

— 

7 

4 

2 

1 

1 

1 

— 

2 

1 

1 

— 

1 

23 

Muskogee 


1 

4 

6 

6 

5 

9 

6 

2. 

5 

6 

5 

7 

G 

2 

4 

74 

Noble 



3 

5 

4 

1 

3 

1 

i 

10 

4 

9 

9 

9 

9 

5 

(3 

Nowata 




1 

5 

3 

3 

_ 

6 

5 

1 

5 

_ 

4 

1 

3 

37 

Okfuskee 


3 

1 

7 

6 

6 

8 

10 

2 

1 

_ 

1 

1 

1 

— 

— 

47 

Oklahoma 

— 

3 

4 

1 

4 

1 

7 

1 

2 

4 

2 

3 

3 

5 

4 

12 

56 

Okmulgee 



1 

4 

6 

7 

6 

2 

6 

3 

1 

3 

2 

_ 

— 

5 

46 

Osage 

1 

10 

22 

13 

7 

3 

4 

4 

2 

1 

1 

2 





70 

Ottawa 


1 

3 

1 

3 

2 

7 

2 

2 

6 

3 

3 

5 

4 

1 

1 

44 

Pawnee 



3 

4 

2 

3 

2 

6 

i 

3 

6 

6 

3 

5 

7 

4 

55 

Payne 

— 

i 

7 

3 

2 

2 

7 

2 

7 

5 

9 

11 

7 

6 

2 

9 

80 

Pittsburg 




1 

7 

13 

21 

19 

17 

11 

7 

3 

1 

__ 

1 

_ 

101 

Pontotoc 

1 

1 


4 

6 

5 

12 

8 

4 

8 

4 

_ 

_ 

1 

S 

1 

58 

Pottawatomie 



9 

6 

11 

7 

4 


8 

6 

3 

7 

13 

10 

5 

7 

96 

Pushmataha 


1 


8 

6 

5 

5 

2 

3 

4 

1 

3 

3 

1 

5 

10 

57 

Roger Mills 

— 

— 

2 

o 

10 

7 

7 

7 

1 

1 

1 

1 

— 

1 

— 

1 

41 

Rogers 


1 

7 

6 

3 

4 

7 

2 


2 

2 

4 

1 

2 

_ 

_ 

41 

Seminole 


1 

4 

9 

5 

3 

2 

4 

4 

2 

i 




1 

3 

39 

SequoySh 



1 

3 

10 

2 

3 

1 

6 

i 

2 

5 

4 

2 

4 

18 

62 

Stephens 


1 

10 

19 

22 

6 

4 

1 

1 




1 




65 

Texas 

— 

3 

12 

4 

7 

5 

6 

3 

3 

10 

4 

5 

10 

2 

3 

— 

77 

Tillman 

1 


2 

6 

5 

5 

5 

2 

4 

6 

4 

5 

2 

2 

4 

1 

54 

Tulsa 


4 

3 

5 

3 

4 

2 

_ 

2 

_ 

1 

_ 

_ 

1 

_ 

__ 

25 

Wagoner 



_ 

_ 

1 

3 

4 

4 

4 

6 

5 

7 

7 

4 

4 

14 

63 

Washington 

_ 

7 

2 

3 

5 

_ 

2 

1 

_ 

1 

1 






22 

Washita 





5 

12 

ii 

5 

4 

4 

3 

9 

8 

1 

10 

2 

74 

Woods 

1 

6 

9 

9 

11 

11 

3 

7 

8 

9 

6 

8 

8 

8 

3 

__ 

107 

Woodward 

— 

9 

18 

7 

5 

3 

6 

8 

2 

4 

6 

5 

4 

2 

3 

2 

84 

Total 

35 

82 

308 

400 

46G 

438 

387 

311 

305 

345 

322 

337 

311 

245 200 304 4.796 

Table IV 

gives 

41S 

a 

frequency distribution 

of 

the 

district levies 

laid 

for 

the 

year 


1934-35 throughout the state. Of the 4.796 districts represented in this table, 304 dis¬ 
tricts do not levy any ad valorem tax whatsoever; 200 more levy only one mill; 245 
more levy only two mills: 311 only three mills; etc. On the other hand. 35 districts 
levy the maximum of 15 mills; 82 more levy 14 mills; 308 more 13 mills; and 400 more 
12 mills; etc. In other words, there are 1.397 districts that levy less than 5 mills; 1,670 
districts that levy from 5 to 10 mills; and 1.729 that levy 10 or more mills. It would 
be difficult to set up a plan of distribution of state money that would make local levies 
more strikingly uneven. 

Table V shows that the variation in tax levies is common in every county in the 
state. When taxpayers in one district are paying the maximum tax, how do they feel 
toward the taxpayers of an adjoining district who are paying nothing? In some in¬ 
stances. districts paying the maximum levies have excellent schools and those paying 
none have poor Schools, but, in many instances, districts levying close to the maximum 
have poor schools, while other districts paying little or nothing have almost every edu¬ 
cational advantage possible. 

If Oklahoma is willing to commit itself to the principle of equality of educational 
opportunity, it seems only logical that it should also accept the principle of equality of 
effort. The measure of effort, in so far as ad valorem taxes are concerned, is the levy. 
If Oklahoma is going to guarantee equality of educational opportunity up to a reason¬ 
able minimum, it must require the local districts to levy up to a minimum number of 
mills. The average levy now laid by the districts of Oklahoma is 10.07 mills. A levy 
of 10 mills in all of the counties of Oklahoma accounting for the 10 per cent reduction for 
delinquencies, will raise approximately $11,000,000. Therefore, it would seem equitable, 





















ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


29 


if the state is to guarantee a minimum program to all counties, that the counties be re¬ 
quired to levy a minimum, of ten mills in order to participate in the state contribution. 

All counties should be required to lay a uniform minimum levy of ten mills or there¬ 
abouts as a prerequisite to participation in the state school fund. 

Purpose of a State Fund fori Education. In allotting 50 per cent of th e proceeds of 
the sales tax and 75 per cent of the income tax back' to the districts on the basis of enu¬ 
merated child, the state has greatly increased the differences in levies now laid. The 
Tax Substitute Acts were intended to reduce ad valorem taxes and not to equalize, but 
since the money is collected and allocated by the state, it seems only logical to conclude 
that the money should he distributed so as best to meet the educational needs of the 
state. This suggests the creation of a state school fund, into which the sales tax, the 
income tax, and all other revenues for school purposes be paid, and that this fund be 
distributed on the basis of educational need. 

Tire purposes of a state fund for education are two. If the county is made the unit 
of taxation and the levy is uniform throughout the county, it is altogether likely that 
tnany of the richer districts of the county will he called upon to use a part of their 
former revenue to help the poorer districts. Many districts are now laying the maxi¬ 
mum levy in order to support their present programs, which are considerably better than 
those prescribed as the minimum program which the state can reasonably be expected 
to guarantee. If these richer districts are ecompelled to share their wealth with poorer 
districts, ,tliey should in some way be assured that their present programs will not be 
reduced. Hence, one purpose of the state fund for education is to supplement local rev¬ 
enues so that all districts will have an opportunity to increase their school offerings be¬ 
yond the state minimum if they are able and desire to do so. In brief, the proposed plan 
would call for a minimum program prescribed by the State Board of Education. It would 
demand that in order to participate in the state fund the county would need to vote a 
uniform levy of, say. ten mills. The state would then distribute to all counties a given 
amount based upon actual need. The amount should be sufficient to enable any school 
system in the state to carry on the same program it is now carrying on, provided it lays 
the required ten mill levy and is willing to increase that levy to the maximum if neces¬ 
sary, for the enriched program. 

In other words, the first purpose of the state fund should be to relieve the ad va¬ 
lorem taxpayer, much as the sales taxes and income taxes are now doing, but in such a 
way as to meet educational needs throughout the state. The second purpose of the state 
fund for education is to equalize the burden of school support up to the cost of the mini¬ 
mum school. When ip any county the amoulnt of revenue raised by the ten mill county 
levy and money distributed by the state to that county in the form of what we 1 , shall call 
primary aid, will not pay the cost of the minimum school, that county will be eligible 
to apply for what we shall call secondary aid, to an amount necessary to pay for the 
minimum program as prescribed by the State Board of Education. 

There shotdd be created a State School Fund into which all school revenues should be 
paid, to be distributed in the form of primary aid and secondary aid to the various counties 
to supplement the county funds to the extent of financing the state minimum school program. 

Distribution of State Fund. It would seem that any method of distributing money 
for school purposes should seek to distribute the money on the basis of educational 
needs. Oklahoma, like Texas and many other states, has gone on the assumption that 
equal opportunities for education may be obtained by the expenditure of an equal amount 
of money per pupil. The method of allotting the sales and income tax is on the basis of 
the number of children of school age. The Constitution prescribes that the interest on 
the permanent school fundi shall be distributed on this basis. 1 Students of school finance 
have long since discovered that the cost of education is not uniform under all conditions 
and in all localities. Years ago Dr. Paul Mort. in a publication entitled “State Support 
for Public Schools” worked out a “pupil-teacher-ratio” as the basis of distribution of 
state money, showing that the cost of education Is not equal under all conditions and 


’Art. XI, Sec. 2. 



30 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


that equal educational opportunities cannot be secured by distributing money on the enu¬ 
merated child basis. He showed that the teacher-basis is much more likely to fit the 
needs of a given school unit than the pupil basis, and, further, that the number of 
teachers needed depends upon the size of school. In computing the number of teachers 
needed, it was necessary to know bow many schools there were of a given size. 

In other Words, Dr. Mort established in the thinking of school administrators the 
weighted-teacher method of distributing state money instead of the enumerated pupil 
basis. Various modifications of the so-called weighted-teacher basis have been used in 
different states. Research students have attempted to adjust the basis of support to 
the need by supplementing the weighted-teacher basis with allowances for transportation 
and certain rewards for the abandoning of one and two-room schools. The most success¬ 
ful effort to arrive at the needed teacher basis is to be found in the method adopted by 
the legislature of West Virginia. This plan, which for the lack of a better name, we 
shall call the teacher-pupil-density basis has been in operation in that state for the past 
two years, with marked success. 

The Teacher-Pupil-Density Basis. The fundamental principle underlying the teacher- 
pupil-density basis for determining the number of needed teachers is that of the density 
of school population. One does not need to travel far in a state like Oklahoma to see 
that the distance a pupil lias to go to school is closely related to the kind of school he 
attends. On the western plains of Oklahoma, one sometimes travels miles without seeing 
a farm house. There are schools in one of the western counties where practically every 
pupil in the room lives on a different section of land. It goes without saying that the 
problem of providing school centers for a sufficient number of pupils and of guarantee¬ 
ing their efficiency is one of transportation ; and the cost of such a program is closely 
related to density of school population. Consequently, the plan of determining the num¬ 
ber of needed teachers which has worked in West Virginia and is now being recommended 
in other states seems especially suited to Oklahoma. 

TABLE VII 


NUMBER OF ELEMENTARY SCHOOL PUPILS IN AVERAGE DAILY 
ATTENDANCE PER SQUARE MILE 
(White and Negro Pupils) 


Elementary 
Pupils per 
Square Mile 

Counties in Group 

Number of 
Counties 

In Group 

.1 — 

.9 

Cimarron 

1 

1.0 — 

1.9 

Beaver, Ellis, Harper, Texas 

4 

2.0 — 

2.9 

Alfalfa, Dewey, Grant, Kingfisher, Latimer, Major, Push¬ 
mataha, Roger Mills, Woodward 

10 

3.0 — 

3.9 

Atoka, Blaine, Delaware, Jefferson, Johnson, Love, 




McCurtain, Noble, Osage 

9 

4.0 — 

4.9 

Adair, Cherokee, Coal, Comanche, Cotton, Craig, Custer, 
Greer, Harmon, Kiowa, Marshall, Nowata, Rogers, Tillman, 
Washita 

15 

5.0 — 

5.9 

Beckham, Canadian, Choctaw, Haskell, LeFlore, Lincoln, 
Logan, Mayers, Murray, Pawnee, 

10 

6.0 — 

6.9 

Bryan, Caddo, Garfield, Hughes, Jackson, Pittsburg, Sequoyah 
Stephens 

8 

7.0 — 

7.9 

Cleveland, Garfield, Grady, McClain, McIntosh, Pontotoc, 
Wagoner 

7 

8.0 — 

8.9 

Kay, Okfuskee, Payne 

3 

9.0 — 

9.9 

Carter 

1 

10.0 — 

10.9 

Washington 

1 

11.0 — 

11.9 


None 

12.0 — 

12.9 

Creek, Pottawatomie 

2 

13.0 — 

13.9 

Ottawa 

i 

14.0 — 

14.9 

Muskogee, Okmulgee 

2 

15.0 —- 

15.9 


None 

16.0 — 

16.9 


None 

17.0 — 

17.9 

Seminole 

1 

40.0 — 

40.9 

Oklahoma 

1 

45.0 — 

45.9 

Tulsa 

1 


Table VII shows that there is one county, Cimarron, that has on the average less 
than one pupil in average daily attendance per square mile; four counties, Beaver, Ellis. 
Harper, and Texas that have on the average less than two pupils per square mile; while 






ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


31 


Oklahoma and Tulsa counties have on the average 40 or more pupils per square mile, 
'the cost of providing equal educational opportunity to the pupils living in Cimarron and 
Texas counties is certain to be more than in Oklahoma and Tulsa counties. As a matter 
of fact, ; at the present time there is a teacher employed for every 12 pupils in Cimarron 
County, whereas, in Tulsa County there is a teacher employed for every S3 pupils. 
Obviously, any plan that distributes state money on the per pupil basis, such as is now 
in use in Oklahoma, is perpetuating the inequalities which are everywhere so noticeable. 
In order to meet the actual need, it would be necessary to give almost three times as 
much money iter pupil to Cimarron as to Tulsa. Accordingly, for the purpose of adjust¬ 
ing the revenues disbursed by the state to the actual needs of the various counties, the 
teacher-pupil-density ratio is the method best suited to Oklahoma. 

All money which the state distributes in the form of primary aid should be distributed 
upon the needed teacher basis. The total number of needed elementary teachers in any dis¬ 
trict should be determined by dhnding the number of pupils in average daily attendance dur¬ 
ing the preceding year by 18, in districts with an average daily attendance of less than two 
pupils per square mile ; by 22, in districts having an average daily attendance of two and 
less than three pupils per square mile; by 26, in districts having from three to less than six 
pupils per square mile; by 30, in districts having six and less than nine pupils per square mile; 
and by 32, in districts having an average daily attendance of nine or more pupils per square 
mile. 

The total number of needed high school teachers in any district should be determined 
by dhnding the average daily attendance in approved junior and senior high schools in the 
district during the preceding year by 22, in districts having an average daily attendance in 
high school of one and two pupils; by 25, in districts having three or more per square mile. 

A careful checking of the number of teachers actually needed as 1 determined by this 
method, reveals that no Violence will be done to the number employed at the present time 
in any county. 

The state should supplement the teachers’ funds in all districts by paying for each needed 
teacher for a period of five months the following amounts : 

(a) For each teacher holding a first grade elementary certificate based on examination , 
$50.00 per month; 

(b) For each teacher holding an elementary certificate based on 40 hours of college zvork, 

$65.00 per month; 

(c) For each teacher holding a state certificate based on two years of college work, $75.00 
per month; 

(d) For each teacher holding a state certificate based on three years of college zvork, 
$80.00 per month; 

fe) For each teacher holding a state certificate based on a bachelor’s degree, $90.00 per 
month; 

(f) For each teacher holding a state certificate based on a master’s degree or a higher 
grade of certificate, $100.00 per month. 

Under this method of distribution, the state would contribute $7,000 000 toward the 
support of local schools, on the basis of the present school attendance. In addition to this 
amount, the state would distribute to the weak counties approximately $3,000,000 in the 
form of secondary aid in order to guarantee to every child in the state the opportunity 
of the minimum school program. The minimum school, which will cost approximately 
$21,000,000, will be financed under this {plan by the county levy to the amount of $11.- 
000,000, and the state to the amount of $10,000,000. Any program beyond the minimum 
would need to be financed by an additional levy over and above the 10-mill levy by any 
county that chooses to lay the additional levy. 

The people of Oklahoma are facing a serious situation with respect to the administra¬ 
tion and financing of their public school system. Unless some plan such as that just out¬ 
lined is adopted, there is a grave danger of a complete breakdown. Numerous evidences 
go to show that the present system is becoming intolerable. The teacher warrant situa- 


32 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


ticm in itself sufficient to condemn the present method of financing the scnools. When 
the amount of money represented by non-cashable warrants is greater than the annual 
salaries of all the teachers for one year, we can hardly say that the school system is on 
a sound financial basis. When there are 3,136 one-room schools and 1,186 two-room 
schools and 864 high schools in a state where the roads are as well developed as in Ok¬ 
lahoma, we cannot approve the district type of organization. When the average daily 
attendance is only 73.3 per cent of the school enrollment, but the lowest of any state in 
the union, we have every reason to believe that the pupils are not receiving the educa¬ 
tional advantages to which they are entitled. 

There is evidence to show that the schools have borne more than their share of cur¬ 
tailments due to the depression. In recent years, the total cost of the elementary and 
secondary schools in Oklahoma lias dropped from $32,000,000 to $21,500,000 or a decrease 
of 32.8 per cent; and elementary teachers salaries have dropped 34 per cent. In view 
of the fact that a largei number of teachers have been compelled to wait for months in 
order to receive their pay or cash their warrants at a discount ranging from 6 to 50 
per cent, sufficient grounds seem to exist for revising the method of school finance. 

If the school organization were such that the entire school population might obtain 
the most from it, Oklahoma could have an efficient school system even with the present 
expenditure. But so long as it is manacled with an extravagant and inefficient form of 
organization—the district unit system—and so long as the cities are hedged about by 
district lines preventing economical consolidations, there is no hope of securing anything 
approaching equality of opportunity regardless of the amount of money the taxpayers 
may put into the school system. 

The first step in improving the public school system is to correct its form of organiza¬ 
tion. This can easily be done by adopting the county as the unit of taxation and administration. 
The next step is the adopting of a method of financial support that zvill guarantee to every 
child in the state a thorough and efficient education. County school administration should 
be under the control of a single board of education of five members and elected at large 
by the people for four-year terms. The county superintendent, now elected, should be ap¬ 
pointed by the board and should\ not be required to be a resident of the county. He should 
be the executive officer of the board and be responsible for the recommendation and assign¬ 
ment of teachers. 

CONSOLIDATION OF SCHOOLS 

One of the main advantages of the county unit system of school organization is the 
opportunity it affords for consolidation of small schools. Perhaps the outstanding weak¬ 
ness of the present school system is the large number of small schools, both elementary 
and high schools, in practically every section of the state. Under the present system, 
the district is usually so small and the wealth so limited that the maximum levy for 
building purposes will not erect large buildings. This is the situation that prevails in 
much of the rural territory of the state. In the urban centers, the wealth is such that 
many of the cities can and do erect fairly good buildings. But the wealthier centers have 
seen their “coign of vantage’, and have formed independent districts, cutting themselves 
off from rural areas. It is evident that larger schools provide a richer school program 
than do smaller schools. It is generally conceded that each community should have its 
own school, whether it be merely an elementary school or a high school; and in order 
to make consolidations economical, it is necessary to establish schools at the natural cen¬ 
ters of population. In other words, towns and cities represent the core of the respective 
communities and are the logical locations for consolidated schools. 

Reorganization Surveys. In order to see to what extent it was possible to consoli¬ 
date schools on a country-wide basis, two counties, Greer and Bryan, were selected by a 
committee of local school administrators for intensive study. Detailed spot maps were 
made of each county, showing the residence of every pupil now attending school. The 
present school buildings and roads were indicated on these maps. A careful study was 
made of the present school conditions, noting size of school, condition of equipment and 
buildings and other factors bearing upon school efficiency. A rather deplorable condi¬ 
tion was found to exist in dependent districts. For example, in Bryan County, we found 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


33 


a sharp contrast between the large and small schools, a contrast which is shown in the 
figures below: 


/Percentage 2nd 

Type 1 Number of Number of Number in Number in Grade is of 



Schools 

Pupils 

1st Grade 

2nd Grade 

1st Grade 

Type I 

54 

3,142 

935 

390 

42 

Type II 

4 

635 

154 

61 

40 

Type III 

12 

2,644 

435 

240 

55 

Type IV 

6 

3,883 

519 

411 

79 


Among the many interesting facts revealed by these figures is the large number of 
one and two-room schools, 54 in all. Perhaps the most significant facts are found in the 
last column, namely, the percentages of promotion. There are 935 pupils in the one and 
two-room schools in the first grade and only 390 or 42 per cent in the second grade. The 
condition is even worse in schools containing three, four, and five rooms. Contrast with 
these conditions the percentage of promotion in schools of nine rooms or more. In the 
larger schools there are 79 per cent as many in the second grade as in the first. A study 
of the preparation of teachers, libraries, and school buildings presents a similar contrast. 

One of the most inexcusable situations to be found in Bryan County is the large 
number of high schools. There are 20 high schools in this county. With one exception 
they range from 14 pupils to 102 pupils. If we set up as a, standard for elementary 
schools 200 pupils and 150 pupils as a standard' for high schools, and this is the mini¬ 
mum that most educators seek to attain in reorganization surveys, then Bryan County 
has only five elementary schools and one high school that meets this standard. After 
studying the possible school centers, the roads and distances of pupils from these centers, 
the conclusion is reached that the entire white population can be easily housed in eleven 
elementary centers and four high school centers. Instead of having 76 schools, with only 
six schools of standard size, there would be only eleven school centers and 15 schools, all 
of standard size, as indicated below: 


Name of 

Center 

Elementary 

High 

School 

Pupils 

Teachers 

Pupils 

Teachers 

Achille 

582 

14 



Mead 

496 

12 



Colbert 

527 

14 



Albany 

864 

20 



Durant 

1,980 

48 

959 

26 

Kenefeck 

437 

10 



Caddo 

690 

18 

537 

16 

Bennington 

693 

18 

542 

16 

Matoy 

483 

12 



Bochita 

482 

12 



Yuba 

423 

10 

669 

20 


Under the proposed reorganization, every school would be of sufficient size to pro¬ 
vide an efficient school program. In fact, they would be almost the ideal size as respects 
both efficiency and economy of operation. Under the proposed plan, only 266 teachers 
would be needed, whereas, 296 teachers are employed at present. There would be a sav¬ 
ing in the current expenditures of approximately $25,000 annually in teachers’ salaries. 
If this amount could be matched by federal funds and applied to buildings it would go a 
long way toward supplying the buildings needed for such a program. Complete reor¬ 
ganization would probably take a number of years. But under a flexible organization, 
whiqh the county unit would provide under the control of a single board of education, 
such a goal could be accomplished within a few years and the ultimate expense would be 
very little more than is now spent upon the present system. The proposed organization, 
makes possible a real educational program, and one that can be vigorously supervised. 
Under the control of capable state and county boards of education, the state would be 

’Type I includes schools of one and two rooms; Type II includes schools of three, four, 
and five rooms; Type III includes schools of six, seven, and eight rooms; Type IV includes 
schools of nine and more rooms. 












34 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


much more exacting with regard to standards of achievement of pupils than it has been 
in the past. Mere records of days taught and pupils enrolled will not suffice. The ac¬ 
tual achievement of these pupils will be measured from time to time by impartial meth¬ 
ods of measurement and we know from wide experience that the pupil’s progress will 
be much more rapid in consolidated schools than in the smaller schools. Attendance will 
be better, teachers will be better trained, and the courses of study greatly enriched. 
These and many other advantages are much more easily attained under a county unit 
form of organization than under the district system. 

A similar reorganization in Greer County would reduce the !27 elementary schools 
and 17 high schools to four school centers, each containing an elementary and high school. 
The size of these schools with the present school enrollment would be as follows: 


Location 

of Center 

Elementary 

High 

School 

Pupils 

Teachers 

Pupils 

Teachers 

1 . 

Mangum 

1,106 

25 

763 

23 

2. 

Granite 

505 

12 

397 

12 

3. 

North Central 

534 

12 

359 

12 

4. 

Westerg 

534 

12 

345 

12 



2,679 

61 

1,864 

59 


At present under the standard of 200 pupils for elementary schools and 150 pupils 
for high schools, Greer County has but two elementary schools and two high schools of 
standard size. Whereas, if Greer County were under the control of a single board of 
education and an appointed superintendent, in all probability within four years time the 
proposed reorganization or one very similar to it would be in operation. No elementary 
school would need be less than 500 pupils and no high school less than 350. Experts in 
school finance tell us that maximum economy can be effected in schools of this size and 
there can be little question but that schools of this size are infinitely more efficient than 
the small schools that now exist in Greer County. Contrast the four high schools in the 
proposed organization having 763, 397, 359, and 345 pupils respectively, with the present 
high schools of 347, 1S9, 98, 81, 65, 59, 49, 44, 41, 36, 36, 33, 30, and 26 pupils respectively. 

Obviously it has been impossible to study) all of the 77 counties of Oklahoma in the 
time at the disposal of this survey, but from the percentage of small and large schools 
found throughout the state it would seem that Greer and Bryan counties if anything, are 
slightly above the average of the state. In fact, the index of consolidation for the en¬ 
tire state is 63.4 per cent, whereas the index of consolidation for Bryan County is 84 per 
cent, and for Greer County 69 per cent. Experience in other states, where consolidations 
are much more difficult than in Oklahoma, suggests that reorganizations of the type pro¬ 
posed for Greer and Bryan counties might well be made for all the counties of Oklahoma. 

County-unde surveys should be made under the direction of the Research and Budding 
Bureaus of the State Department of Education in cooperation with local authorities in every 
county in the state. 

School Buildings. Such a program as the one just recommended will call for ad¬ 
ditional buildings. An inspection of a number of buildings here and there in type coun¬ 
ties and a careful study of reports showing the condition of buildings throughout the 
state, does not indicate that further economy can safely be made in the matter of school 
buildings for the rural boys and girls! in Oklahoma. Not in all sections, but in a ma¬ 
jority of the counties, the rural school buildings and particularly the libraries and other 
equipment are in a deplorable condition. For the amount of money expended. Oklahoma 
has little to show in the way of rural school buildings. Rumors of graft prevail; but it is 
not the duty of this survey to verify or disprove such allegations. Such rumors, however, 
if not disproved, have a tendency to shake the confidence of the public in the manage¬ 
ment of school moneys and to cause taxpayers to vote, against bond issues that are grave¬ 
ly needed. All school moneys voted for buildings should be under the control of such 
agencies as will command the absolute confidence of the public. 

This confidence should not be limited to the integrity of the public official in control 
of school buildings, but should include confidence that the agencies charged with the re- 









ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


35 


sponsibility of locating- and constructing school buildings! are familiar with all the tech¬ 
nical problems peculiar to school building architecture. The general apathy of the public 
so frequently criticized is, in the main, due to lack of information. So long as the re¬ 
sponsibility for the approval of the location and plans for new buildings is vested in a 
county superintendent elected by the people, and so long as the contracts are let by mem¬ 
bers of small district boards, it is little wonder that the state has such a variety in types 
of architecture in her school buildings. A building division, located in the State Depart¬ 
ment of Education subject to the control of the State Superintendent and State Board of 
Education is one of the wisest investments a state can make. If the rights of the school 
children are to be protected and the public is to be assured that its money will be wisely 
spent, this division should be under the direction of a man who ‘is primarily a school- 
building expert and who studies the problems of buildings from the point of view of the 
educational needs of the community it is designed to serve. 

The State Board of Education should be given authority to require that the plans and 
specifications for any and all school buildings to be erected in all the school districts of the 
state be submitted to the Board or its agents for approval. 

Financing School Buildings. If the county unit of school organization is adopted, in 
all likelihood Oklahoma will proceed immediately to reorganize the schools on the county¬ 
wide basis. Only in this way can the advantages of the county unit be fully realized. 
This will of necessity call for a rather extensive building program. Very little money 
has been spent in recent years on school buildings, especially in rural areas. In fact, 
comparatively speaking, only a limited amount has been spent on rural school buildings 
at any time. Perhaps the outstanding reason is that the size of the school district has 
been so small and its wealth so limited that a levy for building purposes, made on the 
taxable property of a given district is insufficient to build a large or very costly building. 
Even with the county as the unit of taxation, a large number of counties will be unable 
to build the type of building of sufficient size to accommodate the number of pupils that 
the reorganization will demand be accommodated at given centers. Even counties contain¬ 
ing wealthy centers will not be able to contribute a great deal, due to the fact that they 
are already under heavy bonded indebtedness, and will not desire to increase this debt to 
help the rural areas. Consequently, the state will be compelled to finance a considerable 
part of the school building program. 

When it is recalled that only 56.9 per cent of the pupils enumerated in dependent dis¬ 
tricts are in average daily attendance, that the state’s percentage of enrolled pupils in 
attendance is the lowest 'in the United States, that there are now over 4,300 one and two- 
room schools in Oklahoma, that there are at the present time $18,000,000 in outstanding 
non-cashable school warrants, and $45,000,000 of bonded indebtedness for school buildings, 
it is clear that if the rural children of the state are to be given an equal opportunity for 
education, the state will have to shoulder a considerable portion of the expense. 

It is inconceivable that the citizens of Oklahoma will be content with educating only 
56 per cent of their sons and daughters living in rural areas. On the contrary, they will 
demand that every boy and girl be given the type of teacher, building, and school environ¬ 
ment that will encourage attendance. Naturally, some one must pay the bill, if the chil¬ 
dren in dependent districts are to be given educational opportunities equal to those en¬ 
joyed by children in independent districts. 

If the legislature adopts the county as the unit of taxation, the county, in so far as 
the county-wide levy goes, will assume its share of equalizing the burden of school sup¬ 
port. But after the county has done its part, the state will have to do the rest. In the 
present emergency, if federal aid can be obtained, it would seem especially opportune for 
Oklahoma to make every effort to provide a building fund designed to match federal mon¬ 
ey, such funds to be used for the construction of school buildings recommended by such 
reorganization, surveys as the ones just made in Greer and Bryan counties. The size of 
this fund should be determined by two factors; namely, the need for building at the 
present time and Oklahoma’s ability to pay at the present time. It should be kept in 
mind, however, that over a period of five or six years, enough can be saved from the cur¬ 
rent expenditures, were the reorganization made effective immediately, to pay the cost of 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


30 

the new buildings. This estimate is based on the assumption that the federal government 
will match the state on a project of this character. The additional cost of transportation 
has been carefully considered in these estimates. 

If it is possible, with due regard to financial considerations and to the needs of the state, 
$2,000,000 should be included in the General School Fund for the purpose of constructing new 
buildings, this money to be used, if possible, in conjunction with federal funds and appor¬ 
tioned to the several counties on the basis of approved need as determined by scientific sur¬ 
veys made upon the authorisation of the State Board of Education in response to requests by 
county boards of education. 

STATE ORGANIZATION AND ADMINISTRATION 

No radical change need be made in the overhead organization of public school ad¬ 
ministration, except with regard to the Superintendent of Public Instruction. 

The State Board of Education should continue as at present constituted, except that 
as soon as it becomes expedient, the Constitution should be amended so that the Superintend¬ 
ent of Public Instruction may no longer be a member of the Board or elected by popular 
vote. The Superintendent of Public Instruction (or, preferably, the Commissioner of Educa¬ 
tion) should be appointed without term and removable by the State Board of Education; no 
sex or residence qualifications should be prescribed for this official; he should be the executive 
officer of the Board; and his authority should be such that he can place the schools on a 
strictly professional basis. 

The State Textbook Commission, and the Board of Control (for military and physical 
training), should be abolished and their functions performed by the State Board of Education. 

The state teachers’ retirement and disability fund should be reestablished on an actuarial 
basis, with the present statutory board of trustees charged with its administration. 

The State Department of Education is at present operating under serious handicaps; 
and its internal organization requires strengthening. 

Elementary School Supervision. A bureau of elementary education, which, in a state 
containing such a large rural population should be one of the most important bureaus in 
the state department, has been abolished. It would be difficult to compute what this so- 
called “act of economy” has cost the rural youth of the state. It is easy to trace its 
effects in every section of the state, and at every level of education from the first grade 
of the one-room rural school through the senior year of our teachers colleges and the 
state university. The percentage of promotion from the first grade to the second in the 
one and two-room schools is approximately 40 per cent. The average daily attendance in 
all dependent districts is only 56 per cent of the enumeration. The rural high schools, 
in addition to being extremely small, are inadequately housed and meagerly equipped 
with libraries and laboratories. Inspection of all of the teachers colleges and other colleges 
and universities of the state has failed to disclose a training-school set-up. whereby a rural 
school teacher can obtain observation and practice teaching facilities to prepare her for one 
of the most difficult tasks in the entire field of education, namely, instruction in tho un¬ 
graded rural school. All of these inexcusable conditions can to an extent at least be 
traced to the lack of a rural school division in the State Department. At any rate, a 
well-manned rural division would do a great deal toward remedying what is unquestion¬ 
ably the greatest weakness in the entire school system of Oklahoma, namely, the lack 
of rural school leadership. 

There is a thought, amounting almost to a complex, in the minds of laymen as well 
as of teachers, that the higher levels of education are the more important, and that 
rural life is insignificant compared with urban life. Where this feeling is so general, 
it is easy to excuse the young man or woman who resents the idea of preparing to teach 
in rural schools. This explains, no doubt, why 21.5 per cent of the teachers now teach¬ 
ing in the rural schools received their training as high school teachers. It is not so 
easy to excuse professors in teachers colleges and universities, when they know the im¬ 
portance and the possibilities of rural education, for neglecting to meet the needs of 
rural school teachers. The writer was told by the officials of one state teachers college 
that their institution offered four courses in rural education. So the catalogue said. 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


37 


but, upon further examination it appeared that no one had elected to take any of 
the four courses in rural education during the last two years. From experiences like 
this, one is forced to conclude that rural education is not being featured in Oklahoma. 
It is to be hoped that county-wide organization will bring about consolidations that will 
reduce rapidly the demand for teachers of ungraded schools; but, so long as 4.300 one 
and two-room schools exist in the state, some specific provision should be made for the 
training and supervision of rural school teachers. Under the county-unit form of or¬ 
ganization, the demand for rural school supervision will be decidedly increased. The 
need for trained leadership in rural school organization will be such that a rural school 
division or an elementary school division that will include graded and ungraded schools 
is one of the outstanding needs of the State Department of Education. Hence, it is rec¬ 
ommended that: 

A bureau of elementary education, including rural and urban supervision, be reinstated as 
one of the major subdivisions of the State Department of Education. 

High School Supervision. Whenf the elementary division was abolished, the demands 
for supervision in this held fell on other divisions of the department. A considerable 
portion of it fell upon the high school division, which accordingly, has been handicapped 
in the discharge of its regular duties. There has been, however, a compensating factor. 
It is obvious that the members of the high school division are sympathetic with the 
problems of elementary education. They display a concern for a coordination of the 
work of the two divisions that is distinctive and commendable. Too much of the time 
of the supervisors appears to be consumed in compiling and computing records. Not 
infrequently several members of the department are called into conference to compute 
the amount of state aid a given district is entitled to under the complicated regulations 
that control its administration. Under the district organization it is difficult for this 
division to do other than approve the establishment of so many small high schools. If 
the county is made the unit the high school division will doubtless be called upon to 
formulate rigid standards for the approval of the Superintendent and the State Board. 
Reorganizing high ’schools and revising their curricula will be the task of this division. 
Therefore, it is recommended: 

That the division of High schools be continued in the State Department of Education 
under the name of the Bureau of High Schools; and that it be freed from much of the clerical 
work that now burdens it, in order to devote its time to organisation, instruction, and super¬ 
vision. 

Research and Statistics. The* work of the present division of research is practically 
the clerical work' of the entire Department. The director 'is practically the floor-walker 
in a department of statistics. He 'is called upon for every item of information, from 
the number of dollars expended in the entire school budget in the 4,800 school districts 
to the amount of money needed from the state legislature to finance the entire program 
of education. 

The amount of statistical work in the Department is simply appalling. The public 
generally has a very meager conception of the number of reports required to administer 
education in a system consisting of 4.800 districts, 77 counties, 18 institutions of higher 
learning, under the control of 15,000 school board members; 77 county superintendents, 18 
college presidents, and nine independent boards of higher education. In addition to 
these administrative officers, there are thousands of superintendents and principals 
that make separate reports and file records in the Department. Many of these reports 
are quite technical; they have to be verified and compiled by someone and put in form 
for interpretation. Somehow there is a feeling among public officials that statistical 
data has the right of way, particularly if it has to do with dollars and cents. Hence, 
whenever any superintendent, principal, or teacher that happens to be entitled to state 
aid comes to the Capitol, he must he given immediate attention by all the persons 
concerned. This may, and often does, mean a conference with the director of research 
wffio is serving at present as state aid clerk, (a few months ago the state aid clerk 
resigned and no one has been appointed, due to limited funds, to take his place) other 
members of the clerical division, the high school supervisor, supervisor of Negro eduea- 


38 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


tion, the director of the transportation and building division, and sometimes it is 
necessary to call in the State Superintendent. And what usually happens is that they 
find that in the computations some excise board has made an arbitrary decision in re¬ 
gard to the allocation of levy for that particular school district and sometimes a court 
decision is required to know who is right, the school officials or the excise board. This 
Instance may seem an exception, but it is far too common to escape observation. The 
writer has seen the office of the director of research filled repeatedly with persons on 
just such missions, with continuous conferences. One Sunday the director, while at¬ 
tempting to do some important work for the legislature, was interrupted by 18 persons 
who had come to see him on a matter of this sort. During the last four years, the 
clerical force of the department has been so reduced that the hands of the various divi¬ 
sions have been serving as clerks. Demands for clerical services are insistent, and ad¬ 
ministrators, not occasionally but almost continuously, are being interrupted to attend 
to such details. 

• The division of research should be an agency of the entire educational system of 
the state. That is, it should be the central office where research students could secure 
suggesiions for problems and guidance in pursuing scientific studies in education, par¬ 
ticularly those dealing with state school administration. Modern industry and com¬ 
merce have learned the value of constant measurement of products to guide their 
operations. A complex state system of education requires constant study of its out¬ 
put and constant adjustment of its internal relations to keep it moving along progres¬ 
sive lines. Instead of having a state survey every five or ten years, there should be! 
a continuous survey. Should Oklahoma adopt the county unit form of organization, 
the director of research should be called upon to conduct county reorganization sur¬ 
veys in cooperation with the division of school house planning in every county in the 
state. 

The division of research should be closely affiliated with the Department of Ed¬ 
ucation in the graduate school of the University. This contact would be of mutual bene¬ 
fit. The graduate school needs to have practical problems taken out of the daily life 
of fho state in order tp give their graduate students realistic understanding of con¬ 
temporary research. The State Department of Education, on the other hand, needs 
the contact with men primarily interested in long-time research in order to give per¬ 
spective and balance to their research program. One of the quickest ways to put new 
inspiration and new ideas into the public school administration is to strengthen the 
Graduate School of Education at the University and bring such headliners as will 
attract the ambitious public school men to the state. 

Under the direction of the state superintendent and the State Board of Education, 
the director of research should; set up the forms of statistical inquiry that will en¬ 
able him to evaluate the working of the new school system. His studies should initiate 
certain new lines of activity at points where deficiencies are found to exist. To avoid 
duplication of experiment and research there should be close cooperation between the 
work of other divisions of the Department and the research division. In fact, the re¬ 
search division should serve as the clearing house for research along educational 
lines throughout the' state. The director should be the general research coordinator and 
be held responsible for supplying and interpreting educational data to school admin¬ 
istrators, legislators, and state officials. In view of the nature of the work required 
of such a person and the importance of its accuracy, it is especially desirable that the 
director have a separate office suitable for concentrated study. It is utterly imposilde 
for one to do the type of constructive! thinking required of a director of research in 
an environment of comptometers, adding machines, and typewriters. When you add 
to this confusion the almost continuous interruption of superintendents who have 
driven miles to consult with someone concerning their apportionment of stare aid, one 
can readily understand how difficult it is for a director to encourage experimental edu¬ 
cation throughout the state, supervise research work dealing with instructional, ad¬ 
ministrative, and supervisory problems that concern education, whether they are car¬ 
ried on in the State Department, in the various local systems, or institutions of higher 
education. 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


39 

A bureau of research and statistics should be established, with two distinct divisions; 
a division of research and division of statistics. The director of the bureau should head the 
division of research; and the head of the division of statistics should be the assistant director 
of the bureau. 

The head of the division of statistics should be responsible for recording, tiling, 
computing, and interpreting to the Superintendent and bureau chiefs of the Depart¬ 
ment such information as comes under the head of general education statistics. When 
not busy with reports and records, he should assist the director in research studies 
and surveys. 

As the state assumes more and more the responsibility of supporting education, 
it should assume also the responsibility of seeing that the state’s money is spent ini 
accordance with the purposes for which it is appropriated. The people of the state 
have a right to know to the exact penny where the money distributed from the gen¬ 
eral school fund goes. For this reason, this report has outlined in considerable detail, 
the exact formula for the distribution of the state aid so that anyone in a given county 
may know the amount of money due that county from the state. When supplied with 
the regulations of the State Board of Education and the approved budget of a local 
district, anyone should be able to compute exactly the amount of money due the 
county treasurer from the state treasurer. No doubt should ever be allowed to arise 
in the mind of anyone as to whether or not the money appropriated by the legislature 
goes for the purpose for which it is appropriated. One of the best ways to establish 
this confidence is to have a bureau of finance, to study Ischool budgets, prepare instruc¬ 
tions for handling school money, provide forms for proper school accounting, and 
especially audit applications for state aid in any form whatsoever. 

It should be constantly borne in mind that school finance is a technical subject. 
It is uneconomical to attempt to provide an expert 'in school finance in every county 
in the state and yet every board of education is entitled to technical advice upon 
certain aspects of budget making. Therefore, it seems advisable to have such a per¬ 
son in the State Department w r hosel services would be available for counsel on matters 
pertaining not only to the details involved in keeping financial records, but in actually 
proportioning the seven major items of a school budget. In case the county is made 
the unit, the boards of education will have many involved problems. Even though 
each board may have a secretary or treasurer who will perhaps be the superintendent, 
there are many aspects of school finance that should be uniform throughout the state 
find must be rigidly supervised by the state in order to assure the public that no 
partiality can possibly creep in. Many other duties might well be added to this posi¬ 
tion, but it should not be encumbered with clerical details that will prevent itsi director 
from serving the local district with constructive suggestions, virtually training school 
boards in the matter of properly making out school budgets and how to effect economies, 
as in purchasing supplies, operating buses, and handling materials of all kinds. Such 
service rendered local schools should not be compulsory, but it should be available to 
the boards and school administrators who desire such assistance. 

A bureau of finance should be established in the State Department of Education, the 
duties of zvhich should be specified by the State Superintendent and State Board of Education 
in accordance with the demands brought about by the change in school organisation. Among 
other duties, the director of this bureau should be responsible for distributing state aid and 
for assisting county boards of education in preparing school budgets. 

Buildings and Transportation. There is now established in the Department a di¬ 
vision of buildings and transportation. This division has been of great service in 
advising school superintendents, outlining transportation routes, and making school 
building plans. The report has stressed the probable demand that the county unit 
organization would make on a division of this nature. In conjunction with the bureau 
of research and statistics, county reorganization surveys should be made to determine 
the proper location of buildings, the kind of buildings to be constructed, standards for 
size of schools to be organized, and the best means of providing transportation, similar 
to the survey in Greer and Bryan counties previously mentioned. This is very essen- 


40 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


tial in order that the State Superintendent and State Board of Education may have 
sound information upon which to base their estimates for the state appropriation 
necessary to match local and federal funds for school buildings. 

The division of buildings and transportation should be continued in the State Department 
under the name of the bureau of buildings and transportation, and it should be given suffi¬ 
cient personnel to do effective work in the supervision of school buildings and transportation. 

Vocational Education. The division of vocational education, although l>y law a 
part of the State Department, is at present housed in the A. and M. College located 
at Stillwater, a distance of 70 miles from the state capital. There are some arguments 
in favori of the location of the vocational division in an institution that prepares teach¬ 
ers in agriculture, trades and industry, and home economics. On the other hand, 
there are several other institutions that prepare teachers in these subjects. And it 
often happens that those who teach these subjects are compelled to teach other sub¬ 
jects and can and do attend a college or university located nearer to their home than 
Stillwater. If these combination teachers wish to consult with their supervisors at 
their central office, they are forced to go to Stillwater to consult with their vocational 
supervisor and to the Department of Education to consult with their supervisor of 
other high school subjects. 

From the standpoint of school administration, there should be unity of control. 
The elementary schools are supervised, in so far as the state is concerned, by super¬ 
visors who work out from the State Department of Education. It would seem that 
high schools should also he supervised by supervisors from the State Department of 
Education. Unless one wishes to contend that unity of control is net desirable, or that 
there is a difference between vocational teachers and other high school teachers, he 
would be forced to conclude that either the division of vocational education should be 
located in the state capitol, or that all supervision of high school teachers should be 
decentralized and lodged with the teacher training institutions or other college or 
university that trains teachers. Hence, as a means of preserving unity and coordina¬ 

tion in the matter of state supervision, it is recommended: 

That the bureau of vocational education should be placed in the State Department of 

Education and housed in the capitol with the other bureaus of the State Department of 

Education. 

Negro Education. Oklahoma, over a period of years, has been fortunate In having 
the services of a director of Negro education, whose salary is paid by the General Ed¬ 
ucation Board. There is evidence on all sides to show that the work of Ihe division 
of Negro education is effective. This may not be so apparent to people who compare 
Negro schools w'ith white schools in Oklahoma. But if we compare Negro schools in 
other states with the Negro schools of Oklahoma, we find that Oklahoma’s Negro 
schools are much better. There is considerable variation in the opportunities offered 
Negro pupils in the different sections of the state, just as there is in the opportunities 
offered white pupils, but the division of Negro education has done a great deal to 
equalize those differences and to raise standards wherever possible. 

The division (or bureau) of Negro education should be continued in the Department of 
Education, and maintained at its maximum efficiency. 

Special Education. Provision should lie made in the Department of Education for 
the management and control of the school for the blind and the school for the deaf, 
and for the supervision of instruction in the other welfare institutions. These institu¬ 
tions will be discussed in a succeeding chapter. Certainly, this is no time to neglect 
the physically and mentally defective. Equality of educational opportunity demands 
that no child shall be excluded from the schools because, of physical handicaps and that 
the mentally deficient, the emotionally unstable, the truant, and the delinquent shall 
be given skilled handling, if necessary in special classes or special schools. The public 
schools have an essential and important function to perform in any enild welfare 
program that may be etablished. Supervision of the enforcement of the compulsory 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


41 


attendance law will doubtless be assigned to the bureau of elementary education. The 
proposed reorganization of public welfare administration contemplates the assignment 
of local enforcement, with the approval of the State Department of Education, to 
county departments of public welfare. 

A bureau of special education should be established in the State Department of Education, 
to have charge of the schools for the blind and deaf, instruction in state welfare institutions, 
cooperation zvith the Department of Health and the proposed Department of Public Welfare 
relative to the care and treatment of physically handicapped children, and cooperation zvith 
the proposed Department of Public W elf are relative to mentally deficient and delinquent 
children. 

Teacher-Training. Oklahoma lias made creditable progress in the matter of tlie 
training of her teachers. She ranks above the average among the states in the number 
of years of training above high school. This fact is the natural result of having so 
many institutions licensed to train teachers. The influence of the teacher-training division 
in the State Department established recently, is responsible fci- the elimination of 
duplications and harmonizing professional training. Although the general average is 
high, there are marked indications that the variation is great. This matter will be 
further treated In the chapter on higher education. 

The teachers' colleges should remain under the State Board of Education; and the divi¬ 
sion (changed to bureau ) of teacher training should be continued. 

Administration and Public Relations. The Department of Education, like every 
Other state department, is a public office. The door of every state official is, or ought 
to be, open to the public. Every major department of government should recognize 
the maintenance of its public relations as an essential function. There must be a 
bureau, moreover, to look after the business affairs of the department, keep all books 
of the State Board, and make accounting of all funds administered by the Depart¬ 
ment. The director of this bureau, however, should be more than a chief clerk. He 
should be familiar with the provisions of the school law, and handle much of the 
legal correspondence that comes to the Department except the part that requires in¬ 
terpretation by the State Superintendent. In so far as the Department is responsible 
for school legislation, the director should keep in touch with legislative proposals and 
keep the superintendent informed of public sentiment regarding legal provisions now 
in force and those in contemplation. He should relieve the other offices of the Depart¬ 
ment of various inquiries on routine matters, thereby permitting the Superintendent 
and other members of the Department to pursue their work in a constructive way. 

The State Department of Education should have a bureau of administration to attend to 
the business affairs of the Department, relations with the public, and miscellaneous inquiries. 

Personnel and Housing. In the discussion of the office of the director of research 
and statistics, it was pointed out that the environment of an office is a vital factor 
in determining the kind of work that is carried on. This is especially true of an 
educational office. It matters little how capable an administrator 'is, if he is so handi¬ 
capped in office space and so interrupted by distracting influences that he cannot con¬ 
centrate upon his work, there is little opportunity for constructive thinking. One of 
the chief aims of a State Department of Education ‘is to provide real educational leader¬ 
ship. In order to provide this leadership, the personnel of the Department must be' 
school administrators of superior training. Many of the heads of local school systems 
are men and women of marked ability. In order to keep at the head of a procession 
of this kind, the state supervisors should be unusually well-trained and capable. Hence, 
It is extremely important that the directors of the bureaus just mentioned should be 
qualified to lead in the branches of education to which they are assigned. The staff 
that has the general direction of the expenditure of more than $20,000,000 annually, 
and, what is much more important, the time and energies of 10,000 teachers, and 
through them the education of 600,000 children, should be nothing short of educational 
experts. 


42 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


It goes without saying that when such a staff is employed, it should be so housed 
as to permit the kind of work they are employed to do. The present housing of the 
Department of Education is totally inadequate. No recommendation is made that a 
separate building be provided for the Department of Education; although a number 
of states do possess such buildings; but it is desired to emphasize the fact that the 
present housing facilities are not in any particular adequate or well arranged for 
performing the administrative duties involved in educational administration and lead¬ 
ership. 

Adequate personnel should be provided, including staff members and clerical assistants 
to perform the necessary duties of the State Department of Education, and the cost of this 
service and proper housing requirements should be recommended by the State Superintendent 
and State Board of Education. 

Private and Parochial Schools. Private and parochial schools of all types should 
be supervised by the State Board. State authorities should ascertain whether pupils 
attending such schools are receiving the minimum essentials of an education prescribed 
by the compulsory laws of the state. 


CHAPTER IV 
HIGHER EDUCATION 


In the preceding chapter dealing with the common schools of the state attention 
was focused upon the pupil. The approach was from the standpoint of the child. In 
tfie present chapter, for those aspects of higher education that may be regarded as 
general, emphasis will still be on the fullest development of the individual; but, for 
the professional aspect of higher education, the training given to the student must be 
judged from the point of view of the public. The quality of professional training 
must be considered to determine whether or not its product meets the needs of the 
state. 

Oklahoma has 43 institutions for higher education. There are 18 state-supported 
colleges, as follows: Five four-year colleges, including the State University at Nor¬ 
man, Oklahoma A. and M. College at Stillwater, Oklahoma College for Women at 
Chiekasha, Colored Agricultural and Normal College at Langston, and Panhandle A. 
and M. College at Goodwell; six four-year teachers colleges ; and seven two-year junior 
colleges. In addition, there are nine denominational colleges, six of which are four- 
year colleges and three two-year junior colleges, and sixteen municipal junior* colleges, 
seven of which are two-year, and nine one-year junior colleges. 

This array of institutions presents all the problems that are inherent in the ad¬ 
ministration of higher education: Rivalry between the State University and tne A. and 
M. College, natural where the land grant college is separated from the University; 
the problems'that arise between denominational and state-supported colleges, relative 
to tuition and affiliation; the question of the special function of a college for women; 
the problem of duplication in teachers’ colleges; and the rapidly increasing problem 
of the place the junior college should assume in the entire educational system. Whether 
the revenues necessary to support these 43 institutions are derived from student fees, 
church collections, or state or local taxes, they constitute a heavy drain upon the 
citizens of Oklahoma. 

No institution is more than 45 years old. In 1S90, the year Oklahoma became 
an organized territory, three were established: Oklahoma University, Oklahoma A. 
and M. College, and the Central State Teachers College. In 1897 the Colored Agri¬ 
cultural and Normal College and the Northwestern Teachers College were established; 
and in 1901, another teachers college and a University Preparatory School at Tonkawa. 
The latter was soon matched by a preparatory school at Claremore. In 1907 another 
agricultural college appeared, and 1908 saw two more agricultural colleges. Six in¬ 
stitutions were created in 1909: three teachers colleges in the eastern part of the 
state, corresponding in location to the three in the western part; the Oklahoma College 
for Women at Chiekasha; the Eastern Oklahoma College at Wilburton : and another 
A. and M. College in the western panhandle. In 1919 a junior college wars established 
at Miami in the northeastern section; and, in the following year, a municipal junior 
college at Muskogee in the east central part. In 1925 a junior college came to light 
at Altus in the southwest. The following year witnessed another junior college, this 
one at Okmulgee in the east central part. In 1928 still another was established at 
Bristow in the same general region. In 1931 another appeared at Seminole, also in 
the east; and another at Sapulpa in 1932. The same year a junior college was es¬ 
tablished in the western section at Woodward. In 1933 another junior college was 
set up at Poteau. The motives for establishing the numerous colleges are not hard 
to imagine. Several volumes have been written describing the rivalry between east 
and west, and between the academic and vocational forces in the state. 

The 18 state-supported institutions are managed by nine separate boards, as 
follows: 

1. The State Board of Education, described in the preceding chapter, which has 
charge of the six teachers colleges; 

2. The Board of Regents of the University of Oklahoma, consisting of seven 


44 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


members appointed by the Governor with the advice and consent of the Senate for 
overlapping seven-year terms; 

3. The State Board of Agriculture, described in a succeeding chapter, which con¬ 
trols the Oklahoma A. and, M. College at Stillwater; the Connors State Agricultural 
College at Warner, the Murray State School of Agriculture at Tishomingo, the Cam¬ 
eron State School of Agriculture at Lawton, and the Fanhandle A. and M. College 
at Goodwell. 

4. The Board of Regents of the Oklahoma College for Women at Ohickasha, com¬ 
posed °f five members; the Superintendent of Public Instruction ex-officio and four* 
other members appointed by the Governor with the consent of the Senate for five- 
year overlapping terms; 

5. Board of Regents of the Eastern Oklahoma College, composed of the Governor, 
the Superintendent of Public Instruction, and three other members appointed by the 
Governor for four-year terms and removable at his pleasure; 

6. The Board of Regents of the Northeastern Oklahoma Junior College at Miami, 
composed of five members, the Superintendent of Public Instruction and four others 
appointed by the Governor with the advice and consent of the Senate for overlapping 
five-year terms and removable at his pleasure; 

7. The Board of Regents of the Colored Agricultural and Normal College at 
Langston, comprising the Superintendent of Public Instruction and four other mem¬ 
bers appointed by the Governor by and with the advice and consent of the Senate 
for five-year overlapping terms and removable by the Governor at pleasure; 

S. The Boa^d of Regents of the University Preparatory School and Junior College 
at Tonkawa. composed of the Governor and two additional members appointed by 
him for terms of four years and removable by him at will; and, 

9. The Board of Regents of the Oklahoma Military Academy at Claremore, also 
with two appointive members and the Governor ex-officio. 

In addition to these various institutional managing agencies, the following boards 
are provided by law: 

1. The Coordinating Board, composed of 15 members, appointed by the Gov¬ 
ernor and confirmed by the Senate for terms of four years. 

2. The State Commission of Agriculture and Industrial Education, composed of 
the Superintendent of Public Instruction, the President of the State Board of Agri¬ 
culture, and the President of the x\. and M. College. 

GENERAL SET-UP AND LAY-OUT 

Geographically, the institutions of higher education are fairly well located. Their 
location suggests that they are expected to serve a given district, and the residences 
of their students indicate that they are so regarded. A decided effort exists on the 
part of the respective presidents to lead students to feel that they are expected to 
attend the college in their district. Almost all colleges throughout the country are in 
a sense local; but the colleges of Oklahoma are especially so. 

TABLE i 

PERCENTAGE OF STUDENTS GOING A GIVEN NUMBER OF MILES 
TO COLLEGE IN OKLAHOMA 


Number 

of 

Miles 


Four-Year State 

Colleges and Teachers Junior 

University Colleges Colleges 


0 — 25 - 

US — 50 _ 

r,i — 99 __ 

300 — 500 _ 

Out of state or unknown 


43 

44 

62 

9 


IS 

24 

24 

10 

15 

6 

6 

9 

2 

4 


Table I shows that 43 per cent of the students attending the University and other 
four-year state colleges live within 25 miles of the institution they attend; 44 per cent 










ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


45 


of the students attending teachers colleges live within 25 miles of the institution they 
attend; and 02 pen cent of the students attending junior colleges live within 25 miles 
of the college they attend. Possibly 50 per cent of the students attending institutions 
of higher education live within driving distance of the institution of their selection. 
The junior colleges are more distinctly local than the teachers colleges and other four- 
year colleges. Nevertheless, since 44 per cent of the students in teachers colleges are 
within 25 miles, and 68 per cent within 50 miles of their institution, the teachers col¬ 
leges are practically district colleges. Only 8 per cent of their students live more 
than 100 miles from college. This fact, in part, explains the elements of localism 
that are constantly cropping out in matters of control of these colleges and explains 
some of the obstacles to working out a state-wide plan of diversified teacher-training. 

Effect of Distance on College Attendance. In a state where the density of popula¬ 
tion varies as much as in the different sections of Oklahoma, one must take note of 
the matter of distance in a study of the number and location of colleges. Through 
the cooperation of the State Co-ordinating Board, a minute study was made of the 
distance students were compelled to go to the college of their choice. It is impractical 
to attempt to present all of the tables compiled in this seven-hundred-hour study. 
These facts are available in the office of the Co-ordinating Board. They reveal wide 
variation in the practice of students in the different parts of the state in the matter 
of patronizing their local institution. In the case of some institutions, the students 
universally go to the state college that is most convenient; and. in otner cases, the 
situation is just reverse. Tliet authorities in control of state institutions should ttudy 
these tables and make inquiries why this variation occurs in the matter of patroniz¬ 
ing local colleges. Since this is a question of policy and should be left to the agencies 
in control of these various institutions, no effort has been made to present all the facts 
regarding specific institutions. There are. however, a few observations that may 
appropriately be made. Table II gives the same information as Table I except that, 
it analyzes the percentage by classes. 


TABLE II 

PERCENTAGE OF STUDENTS LIVING WITHIN FIFTY MILES OF THEIR 
COLLEGE BY CLASSES' IN EACH GROUP OF COLLEGES, 1934 


Group of Colleges 

Freshman 

Sonhomore 

Junior 

Senior 

Graduates 

Four-year colleges and universities _ 

51 

52 

50 

51 

65 

State teachers colleges 

67 

65 

69 

74 


Junior colleges 

79 

81 





Table II reveals a striking uniformity in the percentages for the various years 
of college. If these percentages are true indices of the localism of the various in¬ 
stitutions at the various levels of college work, there is as much localism in the 
junior and senior years as in the freshman and sophomore years. At any rate, there 
is no radical demarcation between the junior and senior colleges, in the four-year 
colleges, and little evidence of a demarcation in junior and senior colleges in teachers 
colleges. It is significant that the work offered at the graduate level is decidedly 
local in its appeal; and one would expect the work of the junior and senior years 
to have a wider appeal than the freshman and sophomore work. If the work of the 
senior colleges were more diversified, there would be a larger number of students going 
a greater number of miles for the special work. As a matter of fact, the senior year 
In the teachers colleges draws 74 per cent of its students from a radius of 50 miles 
or less. 

The effect of distance upon college attendance has, in the opinion of the writer, 
been underestimated. It is difficult to study this factor by the facts available con¬ 
cerning! the students and colleges in Oklahoma.' If the drawing power of the various 
institutions were equal and the same at all levels, one could better interpret the facts. 
But we know that the institutions do not make the same appeal in all sections of the 
state, because there is too great a difference in the institutions themselves. 

According to the accompanying map, the average student in Cimarron County 







OUTXvIlNm MAP {S'r.iVTB OF OKLAHOMA 


46 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 



i 





























































































































ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


47 


travels now 195 miles to the college of his choice; the,average student in Cleveland 

County goes 20 miles for his college education. It is clear that the opportunities for 

higher education are not equal. ' Not only are the distances that the students have to 

go) unequal, hut the offerings of the various institutions differ. The reader who has 

followed the argument presented in the preceding chapter for the distribution of state 
money for piublic education will see that we have the same situation in regard to 
higher education. It is more expensive to supply education to students in sparsely 
settled areas. Again, ,educational opportunity is closely related to the distance one 
v has to travel for his education. Or rather, a student’s chances of getting a higher 
education are closely related to the distance lie has to go to get to college. 

Table III gives us the percentage of high school enrollment that is attending in¬ 
stitutions of higher learning in Oklahoma, and the average number of miles each has 
to go. It is difficult to compute statistically the variation in educational opportunity 
of college students. It is not difficult, however, for one to form certain conclusions 
by studying this table and the map showing the location of state colleges. 

TABLE III 

COMPARISON OF DISTANCE AND PERCENTAGE OF PUPILS ATTENDING COLLEGE 


Name of County 


Adair _ 

Alfalfa _ 

Atoka _ 

Beaver - 

Beckham — 

Blaine - 

Bryan _ 

Caddo _ 

Canadian — 

Carter - 

Cherokee — 
Choctaw — 

Cimarron_ 

Cleveland — 

Coal - 

Comanche 

Cotton _ 

Craig 

Creek - 

Custer _ 

Delaware - 

Dewey - 

Ellis _ 

Garfield --- 

Garvin - 

Grady _ 

Grant - 

Greer _ 

Harmon — 

Harper - 

Haskell — 
Hughes — 
Jackson __ 
Jefferson - 
Johnston — 

Kay - 

Kingfisher - 

Kiowa _ 

Latimer — 
LeFlore — 
Lincoln — 

Logan - 

lore_ 

'McClain — 
McCurtain 
McIntosh _ 

Major _ 

Marshall -- 

Mayes - 

Murray — 
Muskogee _ 

Noble -- 

Nowata 


Number of 
Students of 
Higher Education 


Per Cent of High 
School Pupils 
in College 


Distance to 
Higher 
Education 


78 


‘ 16 


65 

173 


18 


71 

40 


9 


86 

43 


10 


161 

175 


15 


130 

120 


13 


90 

320 


22 


20 

297 


15 


66 

173 


17 


58 

238 


12 


89 

218 


13 


24 

S3 


12 


141 

33 


12 


195 

981 


77 


20 

58 


12 


58 

332 


26 


48 

109 


19 


84 

67 


13 


128 

247 


7 


78 

337 


29 


45 

53 


10 


72 

61 


7 


117 

48 


12 


144 

502 


22 


51 

226 


17 


54 

438 


23 


30 

159 


22 


85 

183 


20 


144 

126 


17 


177 

41 


14 


146 

70 


13 


104 

119 


10 


75 

190 


14 


145 

116 


14 


106 

130 


24 


30 

434 


17 


54 

149 


15 


66 

218 


16 


135 

80 


30 


24 

154 


13 


156 

206 


16 


60 

295 


19 


23 

51 


18 


111 

92 


12 


41 

116 


14 


200 

102 


16 


92 

57 


13 


85 

58 


15 


55 

84 


12 

• 

107 

84 


16 


52 

344 


13 


99 

101 


18 


43 

45 


6 


137 

























































48 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


Name of County 

Number of 
Students of 

Higher Education 

Per Cent of High 
School Pupils 
in College 

Distance to 
Higher 
Education 

Okfuskee _ 

80 

8 

98 

Oklahoma 

2,305 

20 

20 

Okmulgee 

. _ _ 203 

9 

102 

Osage 

_ 154 

9 

136 

Ottawa _ - 

219 

15 

56 

Pawnee 

102 

11 

63 

Payne __ 


26 

9 

Pittsburg _ _ _ _ _ _ 

__ 254 

15 

94 

Pontotoc 

503 

37 

10 

Pottawatomie — _ _ . 

414 

17 

42 

Pushmataha 

41 

21 

117 

Koger Mills - — 

71 

12 

143 

Rogers _ _ _ 

88 

11 

76 

Seminole 

291 

13 

66 

Sequoyah 

78 

15 

108 

Stephens - _ . 

214 

14 

87 

Texas 

205 

27 

71 

Tillman 

178 

17 

121 

Tulsa 

. _ 1,333 

15 

57 

Wagoner 

52 

14 

80 

Washington 

134 

9 

171 

Washita _ - - 

208 

20 

84 

Woods , 

. __ 355 

_ 

16 

Woodward 

83 

12 

121 

Total 

17,544 

19.46 

57 


The correlation between the two series of facts found in this table is reasonably 
high and negative. The percentage of high school students attending college is in in¬ 
verse proportion to the number of miles to college. This evidence should not be dis¬ 
regarded in considering the location of colleges and the number of colleges needed. 

It is especially significant relative to the junior colleges whose aim should be to pro¬ 
vide the fullest development for the individual. It does not follow, however, that 
every section should have a small college. The number of colleges is not a guarantee 
of educational opportunity. The drawing power of the small college is weak. It is 
probably true that a few students go to the small local college that might not other¬ 
wise attend any college; but from four-fifths to nine-tenths of the enrollment of smaller 
colleges live within 25 miles of the town in which it is located. The number of stu¬ 
dents within the 25 m'ile radius of small colleges that go to the university and other 

large institutions clearly reveals that the small colleges are not satisfying the demand 

for even junior college training. 


Why the Small College is l nsatisfadory. Oklahoma has the same problem in pro¬ 
viding adequate opportunity for higher education that she has for elementary and 
secondary education. College students are so few in certain sections that it Is difficult 
to assemble a sufficient number to create a student body. It is expensive to provide 
buildings, equipment, libraries, and faculty members of sufficient training and ability 
to do standard college work in a small college. Not to provide a suitable environment 
and standard instruction is still more expensive. All other things being equal, the 

smaller the institution, the less is its radius of influence. Undoubtedly there is a 

point beyond which the small college ceases to attract. This distance for the smaller 
junior colleges seems to be about an hour’s ride in a motor vehicle. Students living 
beyond these limits, who are compelled to board away from home, are Inclined to go 
to what they think is the best college, irrespective of distance. The fact that they 
do this indicates that they do not regard the small college worth their time. If it is 
true that the small college is not worth the time of these students, it is not worth 
the time of the resident students. Obviously, the answer to the question regarding the 
number of junior colleges any state should have is that it should have no more than 
it can make of a standard grade. This brings us to the question of standards. 

Sta ” <lal<ls for Allege Work There were 16,000 high school graduates in 1031 and 

9,»— 1 he colleges of the state enrolled 8.772 freshman students, or 54 5 per cent 
almost half of the high school graduates did not go on for more training Due to 
social changes during the last decade, industry, including agriculture, cannot absorb 































ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


49 

the junior worker. There will probably be diminished work for young people for 
some time. The state therefore, should provide a program profitable to young people. 
If the state would invest in a good general education, not of the traditional type, much 
good could be done. Many young people are not interested in the traditional classical 
course, preparatory to the traditional university. At least 50 per cent of high school 
graduates are not of university calibre. They are not suited for professions, and if 
urged to enter them would fail to render the service the public is entitled to receive. 
They would merely compete with those who have ability. For the most part, these 
young people are not interested in university courses, but could be interested in junior 
college work if the i>roper program were set up. All who have any ability at all are 
interested 'in the problems of the day. A junior college course should be set up for 
the purpose of developing an understanding of modern problems in the fields of gov¬ 
ernment and politics, industry, production, and distribution; vital problems in every 
state and local community. Problems in the field of science from the standpoint of 
the consumer are worthy of considerable time. A real up-to-date course in plant and 
animal development as it affects the life of man will challenge almost any high school 
graduate. Technological development rests upon physics and chemistry; and industry 
owes much of its development to science. Another field of study is found in leisure- 
time activities, or what is called fine arts (art, literature, and music). If courses,are 
organized in the proper way, any high school graduate will be interested in such sub¬ 
jects and will profit by them. 

Society then demands a new type of education for its young people. The funda¬ 
mental aim should be to develop an understanding and an appreciation of modern 
social problems, and an Interest in the finer things of life that will help young people 
to provide for leisure time. 

A course of study should be organised that will cover the three general fields of human 
relationship, this course to be used in all junior colleges and in the first tzuo years in all 
institutions of higher learning throughout the state. The location and number of two-year 
junior colleges should be made the subject of scientific surveys, and adequate standards should 
be set up that will guarantee a general opportunity for higher education equal to that offered 
by the larger colleges of the state. 

Purpose of Senior College. If the junior colleges of the state provide a general 
education of the type just outlined, the senior colleges may well concentrate upon the 
special courses leading to the various professions. In other words, there should be a 
rather marked difference in the curricula of the senior colleges, beginning with the 
junior year of the four-year college. Marked specialization will be necessary to pro¬ 
vide the technical training required to render skilled service. If the work of the junior 
colleges is thorough and of standard grade, a senior college can, by narrowing its par¬ 
ticular field, make possible a high degree of specialization. In the case of teachers 
colleges, it is obvious that any one college cannot hope to train all of the different 
kinds of teachers in the two years devoted to specialized training. The new program 
for the common school, when finally worked out, will call for a given number of kin¬ 
dergarten teachers ; a rather large number of one-room rural teachers, so long as one- 
room schools exist; a rather large number of primary teachers; an almost equal num¬ 
ber of intermediate teachers : a much smaller number of high school teachers, who in 
turn will need to specialize in the various school subjects they desire to teach, such as 
English, mathematics, science, social science, home economics, vocational agriculture, 
physical education, etc.; and principals, supervisors, and superintendents. 

For any college president to say that his institution can train all of these types 
of teachers is an admission that he underestimates the job of president of a teachers 
college. His conception of the possibilities of specialization in the preparation of teach¬ 
ers is inadequate to enable him to direct a teachers college faculty. And yet this is 
the task the teachers colleges of a state, as a whole, should be called upon to perform. 
County boards of education should refuse to employ teachers that are not specifically 
trained for the positions for which they apply. For example, the children of the one- 
room school are entitled to a teacher who lias been trained) to teach in a one-room 
school. If it is necessary, and it isi necessary under the present set-up in Oklahoma, to 


50 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


go outside of tlie state to secure sucli a teacher, the county board of education should 
be compelled by the rules and regulations of the State Board to go outside. One of 
the assignments of the State Board of Education to the Division of Research might 
well be to make a thorough investigation, from time to time, of the number of teach¬ 
ers in various lines needed to serve adequately the public school system; and the State 
Board of Education should make such research effective by embodying its conclusions 
in rules and regulations binding on local boards. A recent study of “Vocational Mis¬ 
placements among Elementary School Teachers in Oklahoma” concludes by saying; 

When the data which show the percentage of teachers in each type of school system who 
are not teaching in their special fields of training are summarized, the following results are 
disclosed: In the open country, 20.4% ; in the villages with populations of less than 2,500, 
14.8% ; in cities with population of 2,500-9.999, 14.8% ; in cities with populations of 10,000- 
99,999, 13.8% ; in cities with populations of more than 100,000, 18.1% ; and in the state at 
large, 14.6%. The conclusion is that, in assigning a teacher, school officials in both the open 
country and the largest cities show a distinct tendency to ignore the teachers field of training. 1 

Coordination, Unification, and Reorganization. Previous efforts to effect coordina¬ 
tion among higher educational institutions have not, judging from results, been effective 
in Oklahoma. A Co-ordinating Board, first set up in 1929 and changed in 1933, exists 
to bring about just such cooperation as has been suggested. The statutory duties of 
the Board are as follows; 

a. The assembling of exact information that will show the actual costs of educa¬ 
tion at the several institutions, together with the immediate and future needs of each 
school, and shall make a report thereof annually to the Governor. 

b. The checking of the upgrading and expanding tendency by a clear interpre¬ 
tation and definition of the function of each of the several institutions and the elimin¬ 
ation of unnecessary and undesirable duplications. 

c. The bringing about of harmonious working relationships among the institutions 
by the establishment of needed councils. 

d. The unifying of the tax-supported institutions into a state system of higher 
education through the determination of an intelligent plan for their further develop¬ 
ment. 

It is further provided that “Any regulations, courses of study, or standards set up 
by the Co-ordinating Board, when approved by the Governor, shall be in full force and 
effect in the administration of the affairs of the institution.” 1 

The purpose of this legislation is to accomplish things that should be done. But 
no appropriation was made to support the Board, and it was not able to accomplish its 
purposes. Nevertheless, the Co-ordinating Board has not failed altogether. One may 
or may not approve of its methods but no one can question the desirability of unify¬ 
ing “the! tax-supported institutions into a state system of higher education, through the 
determination of an intelligent plan for their further development.” A great amount 
of valuable information has been accumulated by this Board, and it points the way to 
the solution of many of the problems that the Board set out to solve. Apparently, the 
failure of the Co-ordinating Board, if it may be said to have failed, is due chiefly to its 
insufficient authority. 

The scattering of control over the agencies charged with the responsibility and 
control of higher education in Oklahoma should be made a matter of grave concern to 
the people and the legislature. If Oklahoma is to have an effective and economical 
system of higher education, the legislature will have to- lodge this authority in the hands 
of certain agencies that have the ability and courage to follow the lead of scientific evi¬ 
dence in making necessary reorganization. Observation and experience tend to show 
that efficient school systems are the results of capable school administration. That 
type of organization that gives greatest freedom to school administrators, if they are 
of the right sort, is likely to prove most successful. The more nearly education is 
administered by professional agencies as opposed to political dictators, the less oppor- 

J Anna Hyde and Richard Hyde. “Vocational Misplacements Among Elementary School 
Teachers.” Elementary School Journal , June 1933. 

Taws, 1933. Chap. 160. 



ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


51 


tunity there is for wastefulness, duplication, and general inefficiency. Hence, the kind 
of educational control that will encourage administrative unity and the proper kind of 
Integration is the kind Oklahoma or any other state should strive hardest to attain. 

Theoretically, these objectives are best attained through a single board; but, prac¬ 
tically, it is extremely doubtful whether one board could unify the activities of 18 
separate institutions, located| as they are and designed to offer different types of edu¬ 
cation. If, however, these institutions can be so grouped that those with common ob¬ 
jectives may be administered as a unit, thereby reducing the number of separate or¬ 
ganizations, it would be a decided step toward simplification. Each group of institu¬ 
tions should be under one board. In line with this suggestion we would recommend 
the following administrative set-up. 

The University of Oklahoma and the state junior colleges should be placed under the 
control of one board of regents; the A. and M. College at Stillwater, and the other A. and M. 
colleges and junior A. and M. colleges should be placed under another board of regents; the 
Women’s College under still another board of regents; and the teachers colleges and other 
state colleges should be placed under the State Board of Education. 

Each of the four boards should consist of seven members, appointed by the Governor for 
overlapping terms of seven years, and removable only by impeachment. 

Under this arrangement the University of Oklahoma and the A. and M. College, 
at Stillwater, would be indirectly responsible for standards, developments, and integra¬ 
tion of the many local colleges. The Board of Regents of the respective groups might 
well designate the presidents of the University and A. and M. College as the executive 
heads of the two groups, with local presidents, deans, or vice-presidents, as they see 
fit, in charge of each campus. 

The Women's College, the six teachers colleges, and the colored A. and N. Col¬ 
lege should each retain its separate chief executive as president. 

No change would be made at present in the Board of Regents of the University, 
except to place the state junior colleges under this board. It would, of course, be nec¬ 
essary to remove the A. and M. College at Stillwater from under the State Board of 
Agriculture. The recent legislature voted to submit a constitutional amendment to the 
people to djo this. It is: to be hoped that the people will approve the amendment. 

Attention has been called to the fact that many of the state junior colleges, like 
the many municipal junior colleges, are serving local communities. Since they are 
limited in their sphere of influence to an area of 25 or 30 miles in most cases, they 
should eventually be placed under the control of local boards of education. Junior col¬ 
leges are more and more coining to be regarded as a parti of secondary education. The 
state is faced with the responsibility of state subsidy for junior colleges whether they 
are separate colleges or affiliated with local high schools; and a definite policy of 
grants should be determined upon by the proper agencies. Under the method of dis¬ 
tributing school revenue passed by the legislature at its recent session, the state in 
many instances will supply almost half of the revenue for high school pupils. There 
seems no logical reason for not extending similar state subsidy for local junior colleges. 
However, if this is done the State Board of Education should prescribe standards gov¬ 
erning the establishment and continuance of what are now local junior colleges. 

The problem of coordination will be partly solved by lessening the number of in¬ 
stitutions and by reconstructing the boards, as above provided. It can be. largely 
solved if the Governor appoints to the boards men and women who grasp the prob¬ 
lems of coordination and) are willing to< cooperate. It is not believed that any useful 
purpose will be served in the future by continuing the Co-ordinating Board. 

The Co-ordinating Board should be abolished; and the respective boards of the institu¬ 
tions, or groups of institutions. should be made responsible for getting together for a discus¬ 
sion of their common problems. 

Likewise, the State Commission for Agricultural and Industrial Education should be 
abolished. 

Size of Junior Colleges. The respective boards should guard with great care the 
establishment of new junior colleges. Their creation and continuance should not be 


52 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


left to local initiative or to tlie self-interest of an ambitious college president, but 
should be controlled on the basis, of actual need and county and communitj reorganiza¬ 
tions. One factor, to be considered, in the establishment or continuance of a junior col¬ 
lege, should be the number of students that can conveniently be brought together. Their 
number will depend upon the size of the county or counties to be served, the density 
of population, and the proximity of other colleges already established. It is important 
that Oklahoma adopt a definite policy for providing junior college opportunities; for, 
if the state commits itself to the policy of supporting senior college and graduate op¬ 
portunities, it is difficult to refuse support to junior colleges. If it supports junior col¬ 
leges, it must provide them at the least cost consistent with recognized standards. 
Whether these colleges are organized by local communities or by state authorities, the 
state directly or indirectly will bear a large part of the expense. Hence, junior colleges 
should only be established at centers that will meet actual needs as determined by 
scientific study, and operated at a cost within the resources of the taxpayers. 

The state should certainly not make the mistake in establishing junior colleges 
that it has in creating small high schools. If Oklahoma continues to permit the estab¬ 
lishment of small schools-, one or both of two things will happen; either an excessive 
load will be placed on the taxpayers, or the pupils will receive, an inferior brand of 
education. 

In order to secure school environments of the proper sort, it will be necessary in 
many instances; to establish junior colleges in conjunction with the larger high schools. 
Other states have proved that this can be done at less than half the cost required to 
operate the separate small college. The large high schools of 800 or 1,000 students in¬ 
variably have better buildings and equipment than the small college of 200 or even 
300 students. With comparatively little, additional instructional force and almost no 
overhead expense, these large high schools can offer two years of standard college work 
to high school graduates of the immediate city and the surrounding territory. 

In order to achieve a satisfactory standard of college education at a reasonab’e 
cost, the school center should have at least 300 students. This standard might well be 
set up by the State Board of Education for the separate junior college. But where 
the junior college is housed with the local high school and the same laboratories, li¬ 
braries, and instructional force is' utilizable to its maximum, the standard set up as to 
number of college students might be somewhat fewer than the 300 set for the separate 
college. It will be necessary, for the appropriate boards, if they are to forestall the 
present tendency to eistablish local colleges at almost every progressive center to set 
some standard below which junior colleges may not be established. These standards 
will have to be rigid. In order to protect the interests of the high school pupils, it will 
be necessary definitely to forbid the formation of college classes unless the standards 
for both high schools and junior colleges can be completely met. Unfortunately, many 
teachers neglect the lower levels of education in order to offer more advanced courses. 
The history of the junior college movement in other states has shown the difficulty of 
maintaining such standards and also the importance of doing so. 

The two hoards concerned should set up definite regulations under which junior colleges 
may be established and maintained at state expense. The minimum standard for separate col¬ 
leges should be placed at 300 students, and the standard for local colleges, operated in con¬ 
junction with high schools, somewhat lower. Any college nozv in existence not meeting the 
standard, should be abolished. 

The problem of guaranteeing to the youth of the state a standard quality in the 
matter of junior college grade is one of the most difficult problems in the entire school 
system. Unless the standard is correct and rigidly maintained, it will lower those that 
should be maintained in both secondary work and the work of the senior college. 

ENROLMENTS 

Table IV, giving the enrolments by classes in the 18 state-supported institutions for¬ 
th e second semester of 1933-34, reveals that the majority of college students attend the 
University, A. and M. College at Stillwater, and the teachers colleges.. The percentage 
of students, taken, as a whole, in the several classes, is much as we would expect, and. 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


53 


over a period of years shows that class enrolment are remarkably stable, a fact which 
suggests that the various institutions year after year serve about the same areas. The 
fact that the junior and senior classes at the University are larger than the sophomore 

TABLE IV 

COLLEGE ENROLLMENT IN STATE-SUPPORTED INSTITUTIONS 
SECOND SEMESTER 1933-34 


Name of Institution 

Freshmen 

Sophomore Junior 

Senior 

Special 

Graduate 

Total 

University of Oklahoma 

1,223 

1,005 

1,157 

1,021 

305 

183 

4,894 

Oklahoma College for Women 

323 

162 

119 

116 

_ 

64 

784 

Colored A. and N. University 

193 

167 

124 

58 

— 

7 

549 

Total 

- 1,739 • 

1,334 

1,400 

1,195 

305 

254 

6,227 

Oklahoma A. and M. College 

771 

620 

619 

529 

97 

94 

2.730 

Cameron State Agricultural College 

303 

179 

-" 

_ 

_ 

9 

491 

Connors State Agricultural College 

i i 

44 

_ 

_ 

_ 

20 

141 

Panhandle A. and M. College 

155 

68 

44 

28 

_ 

5 

300 

Murray State School of Agriculture 

98 

92 

— 

— 

— 

20 

210 

Total 

. _ 1,404 

1,003 

663 

557 

97 

148 

3,872 

Central Teachers College 

452 

314 

207 

192 


62 

1,227 

East Central Teachers College 

392 

257 

179 

208 

— 

114 

1,150 

Northwestern Teachers College 

. _ 343 

194 

134 

108 

— 

24 

808 

Northeastern Teachers College 

255 

200 

151 

132 

— 

69 

807 

Southeastern Teachers College 

204 

174 

145 

99 

— 

32 

654 

Southwestern Teachers College 

341 

217 

105 

90 

— 

68 

821 

Total 

1,992 

1,356 

921 

829 

— 

369 

5,467 

Eastern Oklahoma College 1 - 




__ 

__ 

_ 

307 

N. E. Oklahoma Junior College 

157 

72 

— 

— 

— 

15 

244 

Oklahoma Military Academy 

53 

42 

— 

— 

— 

2 

97 

University Preparatory School and 







311 

Junior College 

175 

130 

— 

— 

— 

6 

Total _1- 

385 2 

244= 

— 

— 

— 

23 2 

959 

GRAND TOTAL 

5.520 2 

3,937 2 

2,984 

2,581 

402 

794 2 

16,525 


class indicates that it is drawing rather heavily from the junior colleges. Undoubtedly, 
it. is 'drawing from the agricultural colleges. The percentage of students enrolled in the 
last two years at the University is 49 per cent of the four-year enrolment; the percent¬ 
age of students in the last two years at the A. and M. College is 43 per cent; whereas, 
the percentage in the upper years of thei teachers colleges is only 34 per cent. No doubt 
a considerable number of students that go to teachers colleges for junior work go to 
the University and the A. and M. College for their senior work. 

It appears from Table IV that two or more students are enrolled in graduate 
classes in every one of the 18 institutions. Graduate students are quite understand¬ 
able at the University and the A. and M. College: but it is not so easy to see why there 
should be such a! large number at the Women's) College and at all the teachers colleges. 
One can understand how a few students might want to return to the college after grad¬ 
uation for an extra course, or to complete the work of a second semester, but 10 per 
cent of the total college enrolment, such as we find at one of the teachers colleges, in¬ 
dicates that graduate work Is deliberately being encouraged. As previously stated, not 
one of the six teachers colleges has a set-up for preparing rural school teachers. It 
looks as if these colleges had forsaken the field of rural education for the sake of 
graduate work. The practice of offering graduate work through extension courses as 
well as residence courses became so general that the Board of Education forbade the 
Offering of graduate work at any of the state, institutions other than at the Universi¬ 
ty and the A,, and M. College. This action is to be commended. 

Graduate work, maintained at the proper standard, is extremely expensive. A few 


1 Figures for classes not given. 

2 Not including Eastern Oklahoma College for which class figures are rot given. 








































54 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


years ago, for example, a survey of Princeton University showed that the cost there of 
offering graduate work was $2,700 per student per year. Even though graduate work 
is expensive it should not he indiscriminately discouraged. In a state as new as Okla¬ 
homa it is desirable that there should be at least one graduate school in order to main¬ 
tain the spirit of research which is essential to any state that desires to attack in¬ 
telligently its social and public problems. No institution that is not specifically equip¬ 
ped for the purpose should be permitted to offer graduate work. The A. and M. Col¬ 
lege should not be encouraged to enter the field of graduate work above the masters" 
degree, and even then should restrict its field to agriculture and allied subjects. All 
other graduate work, including education and commerce, should be confined to the Uni¬ 
versity of Oklahoma. In view of the needs that now exist in Oklahoma at the lower 
levels of instruction and the limited funds available, it is recommended: 

All graduate work should be concentrated at the University of Oklahoma and the A. and 
M. College at Stillwater. 

COURSE OF STUDY 

Table Y gives the enrolment by major courses and reveals that nearly every course 
in the college curriculum is offered in every institution in the state. Even engineering 
is found in every institution except the Women’s College. All of the institutions would 
be expected to have a heavy enrolment in literature, language, the fine arts, science, and 
history; and every college should) give work in these fields of social relationship. It 
is disturbing, however, to see all the colleges save, one offering courses in education. 
From enrolment figures, it is difficult to learn just how much of these courses is ac¬ 
tually taken. We assume, however, that if it is selected as a major, the individual is 
preparing to teach. It is likely that many students who are taking literature, science, 
liistory, agriculture, and home economics, are taking education as a minor with the 
idea of becoming teachers. This, we infer, is generally true of all the teachers colleges. 
But the fact that nearly every institution, including junior colleges, has several stu¬ 
dents majoring in education is evidence that there is no high degree of specialization 
in education. The State Board of Education has recently passed a commendable regu¬ 
lation forbidding junior colleges to offer courses in teacher-training. 

Majors in Commerce. No less than 2,04S students out of 10,523, or one-eighth of 
the total number, are majoring in commerce. Of these students, 415 are registered in 
teachers colleges. Only 33 high schools have as many as 500 students; and one (won¬ 
ders how many graduates of the teachers colleges find positions teaching commerce. 
There were, it is true, 313 certificates issued in 1034; but, unfortunately, we do not 
know how many of those certificated received positions as teachers. If they did. a 
considerable portion of the combination teachers in the small high schools must he 
majors in commerce. If this is the case, it is an unusual situation. Apparently, both 
high schools and colleges are performing the function often performed by business col¬ 
leges. There are comparatively few business colleges in the, state; consequently, the 
demand is heavier upon public colleges for commercial woik. Even so, commercial 
courses appear to be over-emphasized in the institutions of higher education. 

Commerce, as a major subject, should be restricted to the A. and M. College at Still¬ 
water and the Udiversity. 

Agriculture. Enrolments in agriculture indicate a decided concentration in this 
field. Of the 481 registered in agriculture, 305 are students at the A. and M. College 
at Stillwater. This is as we would expect, since this college is established primarily 
as an A. and M. College. The fact that there are so few students majoring in agricul¬ 
ture in the other A. and M. colleges suggests that the major interest of the students 
in these college** is in! other subjects. To be more specific, in Cameron College, out of a 
total enrolment of 41)1 students, only 24 are reported as majoring in agriculture; of 
the 141 students at Connors, only 7 are reported as majoring in agriculture; of 
the 300 at Panhandle A. and M., only 15 are majoring in agriculture; and of the 210 
at Murray, only 18 have, chosen agriculture. If further evidence were needed to prove 
that the so-called agricultural colleges are not agricultural colleges but junior colleges 


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56 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


offering a general academic course, it may be had by studying a record of the gradu¬ 
ates of these institutions. A report on 50 graduates from one of the agricultural col¬ 
leges shows that only two are engaged in agriculture. By far, more of the students 
graduating from agriculture go into teaching than in any or all other occupations. In 
most of these colleges, at least ten go into teaching where one goes'into agriculture. 
This 'is not intended as an argument that agriculture should not be offered. It does 
suggest, however, that a real service need be made of students attending these schools, 
and that the curriculum be adjusted to meet their needs. If. in the light of these studies, 
the governing board decides that they are serving a distinct agricultural need, stu¬ 
dents should be admitted on condition that they major in those subjects. Then these 
colleges should be equipped so that they can provide real training in agriculture. At 
present the A v are not so equipped. If the governing board decides that they are meet- 
ling the need of a general junior college course, they should be equipped with labora¬ 
tories, libraries, and instructional staff, that they may give students a broad general 
background. If tliejr size is below the standard the Board sets for separate state jun¬ 
ior colleges, authority should be given by the legislature to the Board to open negotia¬ 
tions with local municipal or county boards, with the idea of converting them into 
local junior colleges. 

Engineering. The big problem in regard to engineering is whether or not the 
state can afford to support two schools as expensive as an efficient engineering school 
is. This is not the first time the question has been raised in Oklahoma. There are 17 
other states in which engineering instruction has been duplicated. Efforts to con¬ 
solidate engineering schools in those states have met with about the same opposition 
that efforts to consolidate have met with in this state. When such questions reach the 
stage of controversy that this question has reached in Oklahoma, it is usually unwise 
to seek to settle them by executive orders or in the legislature. The arguments for and 
against consolidation are too well known to need further elucidation. The efforts that 
Oklahoma and other states have made to bring about consolidation suggest at least 
the desirability of doing so, and supports the general opinion that one such school is 
all that is needed. If the difficulty the state isi experiencing in abandoning either school 
could be used as an example to ward off duplications in other departments less strongly 
entrenched, it would perhaps be economy in the long-run to retain this unfortunate 
arrangement. But on the other hand, if it is to be a precedent for duplications all 
along the line, the writer is disposed to recommend that the matter be reopened and 
settled on its merits by the constituted authorities once and for all. 

Should the constituted authorities decide not to reopen the question of consolidat¬ 
ing engineering instruction at a single institution, there remains a solemn obligation 
upon! the two institutions to adopt policies of the strictest possible economy, and through 
a series of conferences adjust the undergraduate, graduate, and research program in 
engineering at the two institutions so that while duplication in the major fields is 
frankly recognized, duplication in details will be avoided. In this way, the engineering 
program at the two institutions can be made to supplement one another. 

In view of the limited revenues available for educational purposes, the boards in control 
of the State University and A. and M. College should canvass the situation thoroughly to 
determine the desirability of consolidating engineering instruction at one institution. Should they 
decide not to attempt to do this, the institutions should adopt a program of strictest economy 
and through a series of inter-institutional conferences, develop a joint program zvhich will 
reduce duplication to a minimum. 

Home Economics. Home economics furnishes a good example to show the possibili¬ 
ties of specialization. As a major, it should be limited to the A. and M. College, the 
Women’s College, and possibly one of the teachers colleges, certainly not more than 
two. As a minor it should be offered at any of the other institutions; but those wish¬ 
ing to teach should be encouraged to take their training at the institutions named. 
One exception to this general recommendation would give to students at the University 
opportunity to pursue a major in nutrition. Some work in institutional management, 
with particular reference to hospitals, may also be continued at the University because 
of its hospital facilities. 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


57 


7 hose desiring to teach or major in home economics should be encouraged' to attend the 
A. and M. College, the Women's College, or a teachers college (one of possibly tzvo). Other 
teachers colleges may be allowed to offer a minor to home economics teachers. All other 
institutions should be limited in their offerings to a minor, except that a major in nutrition 
and institutional management may be offered at the University. 

Pre-Law and Pre-Medicine. Table V reveals that practically all of the pre-law and 
pre-medicine work is taken at the University. There is evidence that a few students 
get some preliminary work at A. and M. and the teachers colleges. One can easily im¬ 
agine that these students are mainly freshmen and sophomores who eventually expect 
to take their senior college, work at the University. If the junior colleges adopt the 
general program previously suggested, with the understanding that specialization be 
reserved for the senior colleges, it is altogether likely that many prospective medical 
and law students will take their first two years at a local junior college or teachers 
college. This arrangement might well be made, but it should be definitely understood 
that the junior and senior years in teachers colleges be devoted to special training for 
teachers. 

All strictly pre-law and pre-medicine courses should be restricted to the University. 

Medicine. Whether a state should attempt to support a medical school depends on 
the state’s need for medical service, the proximity to other medical schools and the 
state's ability tdi support such a school. A medical school is expensive and if the ques¬ 
tion were viewed] merely from the point of view of the state’s offering its prospective 
doctors a medical education, it would, in most instances, be more economical for the 
state to provide scholarships so that students could go elsewhere for their training. 
There are other factors to be considered. Apart from these other questions, one may 
reasonably ask: Does the medical school offer such training as to guarantee to the 
public the service it has a right to expect? 

Figures for the distribution of physicians in Oklahoma are available for the year 
1931. In that year. Cimarron Counity had 4 physicians; Texas, 43; Beaver, 9; Harper, 
6; and Ellis 9. Not one of these 71 physicians, according to the American Medical 
Directory, wasi a graduate of the University of Oklahoma. Of the 421 physicians prac¬ 
ticing in Oklahoma County, 107 were graduates from Oklahoma University. Of the 
2.487 physicians practicing in the state, only 259, or slightly over 10 per cent, were 
trained in Oklahoma University. Fifty per cent of local graduates are practicing in 
two counties, Oklahoma and Tulsa ; 28 counties do not have a single doctor trained at 
the University; 17 more counties have only one each : 10 more have only two each ; 8 
more have only 3. Of course, the medical school of the University of Oklahoma was 
established only in 1907. Until recent years, it has graduated only a few stu,dents 
and naturally these have preferred practicing in the larger cities. Up to 1931 there 
were only 534 graduates. As the number of graduates increase, there Is every reason 
to believe that they will reach into other counties in the state. If future analysis 
should show that this is not the case, there would be reason to doubt whether the 
medical school should be continued at state expense. 

The service rendered' by the medical school of the University appears excellent, and 
should, if possible, be continued. Oklahoma needs su,ch service. The only question is, 
should it be supported as a municipal medical school, as a private institution, or as a 
state-supported university department? If it is retained as a state-supported institu¬ 
tion, hospitalization fees should bear a greater part of the cost of maintenance and 
students should he required to pay rather heavy tuition. The institution, if retained 
as a state medical school, should be supplied with a full-time dean appointed by the 
president of the University and in all respects responsible to University officials. 

The Medical School of the University of Oklahoma should be encouraged to extend its 
services to the more remote counties of the state. Its hospitalisation fees should bear a larger 
part of the cost of maintenance; tuition should be increased to $150 to $200 per student, with 
an adequate differential in favor of students from within the states; and a full-time dean 
would be employed upon the recommendation of the president of the University. 


58 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


Law. The records of the Bar Association show that there are 3,546 lawyers prac¬ 
ticing in Oklahoma. Six hundred and ninety-eight, or 19 2-3 per cent, are graduates 
of the state University. Of the 698 graduates, 311, or 44 per cent, are practicing in 
two counties, Oklahoma and Tulsa. On the other hand, there are 36 counties each of 
which has three or less lawyers who are graduates of the state University. Like the 
medical school, the law school is a young institution. It was established in 1910. Up 
to 1933, it had graduated 918 lawyers; 76 per cent of these graduates are now prac¬ 
ticing in Oklahoma. There is a wider distribution of lawyers than of doctors. There 
is every reason to believei that the law school is rendering a real service. Although not 
as expensive as the medical school, the law school is costly; and the question arises: 
What portion of this expense should be borne by the state and what by individuals? 

TUITION FEES IN THE LAW SCHOOL SHOULD BE INCREASED 

Pharmacy. The distribution of registered pharmacists throughout the state shows 
that a much larger percentage of the registered pharmacists, than of the physicians, 
have completed their requirements for license in the University of Oklahoma; and 
their services are also more widely distributed. 

TEACHER-TRAINING 

The most important factor in a good school system is a capable well-trained teach¬ 
er. A school system with untrained teachers is laboring under an almost impossible 
handicap. A qualified, well-trained, and satisfied staff will go far to insure an up-to- 
date educational program. The teachers colleges in any state should be of the first 
class. No amount of money lavished on a school system will bring results if the stand¬ 
ard for teachers is low. 

The Teachers College President. The president of the teachers college should him¬ 
self be a scholar. He should have a broad general education and a thorough training 
in the field of elementary and secondary' 1 education. In the selection of a president, the 
Board of Education should consider only persons who are especially interested in teach¬ 
er-training work. If possible, a person with a Ph. D. degree in education should he 
selected. When selected, he should be given some security of tenure that he may carry 
out a continuous policy. A most unfortunate condition in the teacher-training institu¬ 
tions in Oklahoma is the feeling that positions in these schools are matters of xiatron- 
age. The tenure situation over a period of years is revealed in Table VI. 

TABLE VI 

NUMBER OE CHANGES IN TEACHER COLLEGE FACULTIES BY YEARS 


East South- North- North- South- 

Year Central Central eastern eastern western western Total 


1929 _ 8 8 15 7 4 3 45 

1930 4 4 3 4 1 3 19 

1931 _ 19 3 S 7 3 10 50 

1932 _ 5 1 7 3 3 15 34 

1933 _ 7 8 25 2 - 17 2 61 

1934 4 2 2 1 1 2 12 


Total _ 47 26 60 24 29 35 221 


The shifting, or removing, as it is in most cases, of 221 teachers in six colleges 
over a period of six years is evidence that tenure in teachers colleges in Oklahoma is 
decidedly uncertain. We look, as a rule, upon the professors in our colleges as lieu¬ 
tenants in the teaching force. If the teachers of teachers are subject to such whole¬ 
sale dismissal as we find in years 1931 and 1933, we can but imagine the restlessness 
created throughout the teaching profession. This no doubt explains the sentiment which 
prevails in all parts of the state among teachers for some kind of tenure law. The 
law requiring school boards' to hire teachers every year should be changed. The 
teacher should not be allowed' to feel that he or she has a vested right in any par¬ 
ticular position, nor on the. other hand should a teacher be allowed to feel that a 
career can be ruined to gratify the whims of influential parents or citizens. 













ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


59 


The Teaching' Staff. Second, the teacher in a teachers college should be well-trained 
in broad fields of general education, with specification in the field in which he teaches. 
A master’s degree should he tile minimum requirement for any place on the instruc¬ 
tional staff. Teachers should be removed only on the recommendation of the president, 
and for cause. 

The Training School. Every teacher-training school set-up should provide a train¬ 
ing school of appropriate type. At least, one such school should be on the college campus; 
and probably other schools in the immediate vicinity should be available for demonstra¬ 
tion and practice teaching purposes. The director of the training school, next to the 
president, should he the most capable man or woman on the faculty. One of his chief 
duties should be the assembling of the highest gradp of critic or demonstration teachers 
that he can obtain. 11 is office should be in the campus training school; and he should 
be available for conferences with critic teachers and student teachers. One of the 
best indices of a good teachers college is the interest that all faculty members take in 
the training school. Only highly trained critic teachers should be allowed to direct 
the work of student teachers. They should receive the same salary as the members 
of the regular faculty. Any affiliated school used as a practice should t>e under the 
control of the teachers college. 

Hi© Student Body. The student personnel should be made up of selected high school 
graduates. Only those who show promise of making good teachers should be en¬ 
couraged to take the senior college course in teachers colleges. Faculty member^ 
should be on the lookout during the two years of general education to find superior 
teaching material. Some kind of a comprehensive examination of a selective nature 
should be given at the beginning of the junior year designed to determine whether or 
not the student may go on with profit or whether he should divert his course Into 
some other channel. Superintendents and principals should be urged to encourage 
graduates suited to teaching to go to teachers colleges. 

Division of Fidld of Teacher-Training. All of the teachers for the numerous 
special kinds of teaching needed in the public school system must be trained by the 
institutions of higher learning; but no one institution can be expected to train all of 
them. In order that an institution may effectively train teachers, it should have special 
practice-teaching set-ups suitable for each type of teacher it desires to train. This pre¬ 
requisite naturally limits the field of the average teachers college or department of 
education. In seeking to allot the work of teacher-training, it would .be better to 
assign certain fields of teacher-training to a given institution rather than allot the 
various teachers colleges to a given number of counties. 

Training of Elementary Teachers. Not only are courses in education offered in 
practically all of the 18 state-supported institutions, but all of the six state teachers 
colleges, the four other four-year colleges and the University are training teachers. Ap¬ 
parently nothing in the law nor in the regulations of any board governing these eleven 
institutions restricts in any way the scope of their teacher training. In practice, each 
institution is training teachers for any and all of the various specialties. Under such 
circumstances, no high degree of specialization can lie attained. If the recommendation 
is adopted that all colleges including the junior colleges and the University devote the 
first two years to a general course in human relationships, which will he a broad prep¬ 
aration for the various professions, only two years would be left for specialization. As 
expensive as training schools are, it hardly seems advisable to fit up each of the 
eleven institutions with two practice school set-ups,—one for high school teachers and 
one for elementary teachers. It should seem only reasonable to divide the work among 
the institutions giving to each the work it is best prepared to perform. 

In general, training of elementary teachers should be delegated to teachers col¬ 
leges. Unless the location made! it altogether desirable for a given teachers college 
to train both elementary and high school teachers, the institution should restrict its 
activities to the elementary field. The location of colleges is such in Oklahoma that 
not more than one teachers college would be needed to train both elementary and high 
school teachers. Institutions designated to train elementary teachers should make 
a careful service analysis of the demand and equip themselves to prepare the kind of 


m 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


teachers needed. All colleges that train elementary teachers will be called upon to 
train rural teachers; hence, they should be provided with rural school set-ups. At 
present there are about 0,000 teachers in one and two-room rural schools. If the 
county unit is adopted this number may be rapidly reduced. But the turnover in this 
held is rapid; and the need of new teachers trained for this work is great. Teachers 
colleges designated to train elementary teachers will, of course, need practice schools 
for primary and intermediate grade teachers. It may not be advisable to attempt 
too high a degree of specialization in elementary education, but it is likely that some 
one institution will seek to emphasize this or that type of training, such as music, art, 
kindergarten, physical education, etc. Further research will reveal the number of 
such institutions that are needed to train elementary teachers. Certainly no more 
should be provided than the state can properly equip. 

Training of High School Teachers. In outlining the work for the preparation of 
high school teachers, the State Board of Education should lie supplied with a service 
analysis of the high school situation. In addition, it should require the Bureau of Re¬ 
search of the State Department to make a careful study of present and future demands 
for services in the high school field. If the county is made the unit of school admin¬ 
istration, the demand for high school teachers will change rapidly. County school 
reorganization surveys should be made as rapidly as possible. These surveys will point 
out that a marvelous change can be made, with comparatively few additional build¬ 
ings, in the number and size of high schools. Small high school enrollments can be 
transported bodily to larger centers, leaving room for elementary consolidations in 
the local buildings. In all instances, wherever possible the seventh and eighth grade 
pupils should be placed in six-year high school organizations. One can readily see 
that this will greatly increase the number of junior and senior high school pupils, and, 
let us hope, greatly reduce the number of small high schools. Hence, it is important 
that the future demands for high school teachers should be based upon a careful an¬ 
alysis of the probable effects of consolidation, should the county form of organization 
be adopted. 

When the demand for high school teachers is determined, the State Board of Educa¬ 
tion, acting through the State Superintendent, with such counsel as it deems wise with 
college administrators, should allocate the training of high school teachers to the 
various institutions in the most economical manner possible that will at the same 
time provide specialized training in each field of secondary instruction. In making 
such allocation, it should be borne in mind that, in case the State Board decides that 
all institutions offering junior college work restrict their courses to the Droad outlines 
of a general education, the senior college courses will of necessity be specialized. Ob¬ 
viously, it will not be possible for any one teacher to specialize in three or four high 
school subjects during the two years devoted to professional training. As high schools 
increase in size individual teachers will have fewer subjects to teach. Nor will it be 
possible for a single institution to train elementary teachers, and at the same time 
offer all the special courses for high school teachers. 

Over-Supply of High School Teachers. The number of high school teachers actually 
needed in high schools is limited and will be even with increased high school enrol¬ 
ments. At present, practically all of the higher institutions in the state are permitted 
to train high school teachers. There seems to be almost no control in the matter of 
student enrolments. Selection of courses appears to be left entirely to the judgment 
of individual students. Institutions seem so eager to increase their enrolments that 
they permit students to register in any course they desire, be it English, engineering, 
pre-law, or agriculture. The recent biennial report of the State Superintendent contains 
a complete analysis of the certification of teachers in the various high school subjects. 
The over-supply in some subjects and the limited supply in others suggests the absence 
of effective guidance. Over a period of years, there are between 400 and 500 new 
high school teachers needed each year; but when this number is divided among at least 
six groups of teachers, the number in each group is small. 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


fll 


TABLE VII 

CERTIFICATES OF THE SEVERAL TYPES ISSUED ON THE BASIS OF COLLEGE CREDITS 
DURING THE BIENNIUM ENDING JUNE 30, 1934 


Kind of 

Certificate 

Temporary 

1933-1934 

Two-year 

1933-1934 

Five-year 

1933-1934 

Life 

1933-1934 

Total 

1933-1934 

General 

High School 

303 

294 

406 

48 

271 

18 

790 

727 

1770 

1087 

Special 

High School 

314 

420 

•55 

256 

296 

211 

334 

821 

999 

1708 1 


Total 

617 

714 

461 

304 

567 

229 

1124 

1548 

2769- 

2795 1 


Table VII is taken from the 1934 Biennial Report issued by the Superintendent of 
Public Instruction. Its most hopeful fact is that 714 temporary certificates will expire 
next year, the next most hopeful is that 304 more will expire in two years. The most 
discouraging fact is that 1.54S life certificates were issued last year, and 1,124 the 
previous year. Counting the number of degrees granted and the number of life cer¬ 
tificates issued during thd two years, there is practically a life certificate for every high 
school teacher employed at the present time. The problem of excess teacher-training 
institutions is further aggravated by the fact that there are five denominational col¬ 
leges also training teachers, and a number of junior colleges, state and private, aspiring 
to do so. 

Table VII showsi that 2,709 certificates were issued in 1932-33; and 2,795 in 1933-34: 
besides the 492 degrees granted in 1932-33; and 212 in 1933-34. We have no record of 
the number of certificates outstanding. One might safely assume that there are two 
or three times as many high school teacher’s certificates issued as there are high school 
teachers needed. The writer believes that this fact should be taken into consideration 
in deciding on the kind of tenure law Oklahoma should enact. It would hardly seem 
fair to the number of unemployed high school teachers holding certificates, to pass a 
tenure law that would tie the hands of superintendents and boards of education, and 
prevent their employing the best teachers obtainable. 

Presidents of the teachers colleges' contend that there is not as much unemployment 
as the figures on high school certificates would seem to indicate. They insist that most 
of their graduates secure positions'. An analysis of the 400 graduates reported by one 
of the teachers colleges over a four-year period, shows that 97 are not teaching; 20S 
are married, but this does not mean that they are not teaching. In fact, of 163 of 
the 208 teachers reported married, 127 are teaching and 36 are not; on the others the 
records are incomplete. Alumni records- show that a considerable number of the grad¬ 
uates of teachers colleges are teaching in elementary schools, and no doubt a number 
of teachers, who are trained as high school teachers, are teaching in the open country. 
Dr. Hyde’s figures show that 20.4 per cent of the rural teachers were prepared as 
high school teachers. Up until 1932 a high school certificate permitted its holder to 
teach in grades from one to twelve. Since then, it has been limited to grades- seven 
to twelve. What is happening, no doubt, is that teachers prepare for teaching in high 
schools and when they are unable to obtain a high school position, return to the teach¬ 
ers colleges or university, take one -summer term, receive an elementary certificate, and 
take a job in an elementary school. There is practically no difference in the minds 
of prospective teachers, in the minds of college teachers, nor in the minds of super¬ 
intendents and board members between an elementary teacher and a high school 
teacher. 

This same lack of discrimination appears in the selection of college facilities, or 
ev® college presidents, if one may judge from their recorded training and experience. 
It is said that local principals and superintendents are employed on summer school 
faculties with the idea that they will bring a number of their teachers to the college, 
and encourage their high school graduates to go there. If such a motive is uppermost 
in the minds of the president, it is a reflection on his fitness to hold the presidency 
of a teachers college. 

*To this total should be added 212 degrees issued by the teachers colleges which carry 
teaching privileges. 

2 To this total should be added 492 degrees issued by the teachers colleges which carry 
teaching privileges. 










62 


ORGANIZATION ANI) ADMINISTRATION OF OKLAHOMA 


Assuming that the rules and regulations of the State Board of Education prescribe 
a specialized program for elementary and high school teachers, it will probably be 
necessary to indicate the particular institution that would train each type of teacher. 
It is inconceivable that all six teachers colleges should he permitted to train high school 
teachers. Since the University, A. and M. College, and the Women’s College are also 
training high school teachers, it is apparent that they must be taken into consideration. 

The training of teachers in higher institutions, whether public or private, should be under 
the State Board of Education, which should have authority to say where elementary and 
high school teachers shall be trained, if trained at state expense, and prescribe standards lin¬ 
ger which private colleges may be allotted to train them. 

In the case of the training of high school teachers, since the number is limited, 
the number of institutions should be limited,sand special types of training allocated with¬ 
in these few. For example, at present the Women’s College at Chickasha has an affilia¬ 
tion with the local schools that would enable it to do effective work in training heme 
economics teachers. The college has no training school and no affiliation for providing 
observation and practice teaching in any other high school subject or in elementary 
subjects. Consequently, it should not be permitted to train any other class of teachers 
than home economics teachers. The A. and M. College is admirably equipped or could 
so adjust its equipment to train high school teachers in agriculture, commerce, mechanical 
arts, and home economics, and probably science. It should not attempt to train ele¬ 
mentary teachers nor teachers in other high school subjects. 

The University should be allowed to train high school teachers in English, math¬ 
ematics, languages, commerce, and all other high school subjects save home economics 
and other vocational subjects. If it assumes this responsibility it should materially en¬ 
large its training school and alter the curriculum of the school of education, so that it 
will contrast more sharply than at present with the general academic courses. Only 
those professors should be employed in the school of education that are in sympathy 
with the professional aspects of education. The amount of observation and practice 
teaching should be decidedly increased. In addition, affiliations should be made with 
local school systems that will increase training opportunities. 

In addition to the institutions just mentioned, it is doubtful whether more than 
one or two of the present teachers colleges should be called upon to train high school 
teachers. If the distances were not so great, the ideal situation would be to have 
but one teachers college designated to train high school teachers. If but one were 
chosen to train high school teachers, it should be properly equipped for mat specific 
purpose, and relieved of the responsibility entirely of training elementary teachers. 
But, because of the central location of the University and of the A. and M. College, 
it would perhaps be better to designate two of the present teachers colleges as col¬ 
leges for training high school teachers. These should be permitted to give the general 
course prescribed for all junior colleges, but should restrict their professional training 
to high school teachers. This arrangement would leave the remaining four teachers 
colleges free to specialize on the training of elementary teachers. 

Training of Principals and Superintendents. Should the county unit be adopted, 
it will completely change the demand for leadership in education in Oklahoma. The 
type of school administrator needed at the head of a county school system Is altogether 
too rare. Instead of some 15 or 20 well-trained and capable city' superintendents, Okla¬ 
homa will need 77 superintendents, not only capable of directing a city school system, 
but capable of organizing and administering education in the rural schools as well. 
In addition to the superintendents, there should be a considerable number of assistant 
superintendents and supervisors whose business is to assist the superintendent, and 
supervise the work of the entire county at the various educational levels and in the 
\aiious functions of training. The entire supervisory staff should be organized as a 
unit and work from a central office. This point is essential, for the duties of each 
member of the county supervisory staff should be conterminous (with, the confines of the 
county. To divide the county into regions or districts destroys the unity of organiza¬ 
tion which is. one of the chief virtues, of a county unit system. 

Obviously the training of such a group of leaders is an important matter. There 


ORGANIZATION AND ADMINISTRATION OR OKLAHOMA 


63 


are comparatively few universities throughout the country prepared to give these men 
and women the vision necessary to develop real county school systems. Oklahoma [will 
need to build up a faculty and training school facilities that will enable her to properly 
supply this need. An experimental school is an obvious necessity. The University is 
the only institution in the state that should aspire to do graduate work of this nature; 
and if it is organized to do any graduate work it should be required to do all grad¬ 
uate work in education. Oklahoma should not allow the work in education to parallel 
the unfortunate complication that has arisen in regard to engineering. All graduate 
work then, save possibly that leading to a master’s degree in vocational subjects, 
should be concentrated at the University. A well-organized graduate department for 
training high school teachers, principals, supervisors, and superintendents should be 
developed, it must be able to draw to it professors of outstanding ability. The Uni¬ 
versity should pay enough to keep a valuable staff after it is once developed. 

The junior colleges in all state-supported institutions should offer a general course in 
human relationships. The senior colleges should offer courses of a specialised nature, de¬ 
pendent upon the work they are established to perform. The training of elementary teach¬ 
ers should be restricted to four state teachers colleges. Training of high school teachers 
should be limited to two teachers colleges, the University, the Women’s College and the A. 
and M. College, with the provision that the Women’s College offer training only in home 
economics, and the A. and M. College in vocational subjects. All graduate zvork, except 
work leading to a master’s degree in the vocational subjects, should be limited to the University. 

COSTS , 

Much of the] criticism leveled at educational costs is made because of different the¬ 
ories and because of ignorance of the facts. There are widely divergent views as to 
how far the public should go in providing educational opportunities. Many believe that 
public education should stop with the elementary schools and that they should be lim¬ 
ited to six months or less On the other hand, many insist that everyone should be 
giv n free access to all levels of education, up to and including graduate work in a 
university. Obviously, it is difficult for those responsible for educational expenditures 
to avoid criticism when such differences of opinion prevail. 

Any comparative study of costs of higher education may be misleading. It is 
possible that considerable damage has been done in Oklahoma by attempting to ap¬ 
portion budgetary needs on the basis of the number of students in attendance. Before 
the number of students in a given institution can be made the basis of appropriation, 
it should be definitely determined what kind of an institution it is, the various functions 
it performs, and the number of teaching units and equipment required to perform those 
functions. In a state that provides as many different kinds of institutions of higher 
education as does Oklahoma, it is of interest to know the sources of income for each 
type of institution in other states. 


TABLE VIII 1 

DISTRIBUTION OF SOURCES OF INCOME ON A PERCENTAGE BASIS 


Kind of Institution 

Federal 

Taxes 

Gifts 

State and including 
Local Church 

Taxes Contri¬ 

butions 

Student 

Fees 

Endow¬ 

ments 

Miscel¬ 

laneous 

Sources 

Nation-wide study 

_ 5.0 

28.0 

5.0 

31.0 

15.0 

16.0 

853 private institutions _ 

.1 

2.0 

20.0 

35.0 

18.0 

25.0 

228 public institutions — 

8.1 

53.8 

2.7 

12.9 

2.8 

19.7 

Endowed institutions - 

_ _ _ 

3.0 

20.0 

41.0 

22.0 

14.0 

White land-grant colleges - 

- 9.5 

50.0 

5.2 

10.8 

12.1 

12.4 

Negro land-grant colleges 

11.1 

45.2 

4.2 

5.6 

26.7 

7.2 

Public instStutions in the United 

States 

77.7 

— 

18.2 

4.1 

— 

34 Methodist colleges - 

_ _ 

— 

6.0 

56.0 

22.0 

16.0 

17 liberal art colleges- 

— 

. - 

— 

64.0 

25.0 

11.0 

^‘American Educational 

Research,” 

Finance 

and Business 

Administration, 

April 1932, 


Yol. II, p. 12. 














64 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


Table VIII will enable anyone interested in any particular institution to compare 
its income w'ith the institutions of its class in other states. 

Table IX shows how Oklahoma compares with 22S public institutions and also with 
all public institutions in the United States. 


TABLE IX 

COMPARISON BY PERCENTAGES OE INCOME 


Institutions Compared 

Federal 

Taxes 

State and 
Local 

Taxes 

Gifts 

including 

Church 

Contri¬ 

butions 

Student 

Fees 

Endow¬ 

ments 

Miscel¬ 

laneous 

Sources 

Oklahoma public institutions 

8.2 

66.1 

2.3 

13.7 

5.7 

4.0 

228 public institutions _ 

8.1 

53.8 

2.7 

12.9 

2.8 

19.7 

All public institutions _ 

- — 

77.7 

— 

18.2 

4.1 

— 


Apparently, Oklahoma institutions are receiving about the same amount from fed¬ 
eral taxes as in other states; they are receiving more from state taxes than the 228 
public institutions; they get about the same amount from gifts and student fees; their 
income is twice as much from endowments, but much less from miscellaneous sources. 
When compared with all the public institutions, Oklahoma institutions receive less from 
state and local taxes, unless federal taxes are included; and if they are, the percentage 
would be practically the same. Oklahoma institutions are receiving considerably less 
from student fees than all public institutions. Oklahoma isi not far from the national 
average as respects the portion of income for higher institutions derived from state 
and federal sources, but is not receiving as much from student fees. 

Student Fees. There is considerable controversy in Oklahoma over the matter of 
tuition. Tuition, as such, is not charged, but as the above table shows, institutions 
do charge rather heavy fees which in the long run amount to the same thing. The 
arguments opposed to charging tuition are of the political type, namely, that it is un¬ 
democratic and prevents the worthy poor from getting a college education. The legis¬ 
lature has declared itself repeatedly against tuition. On the- other hand, ad valorem 
taxes are dwindling rapidly as a basis of support for the common schools. At the 
present time. 50 tier cent of the support of local schools must be borne by state taxes. 
Institutions of higher education, too, are forced, to a rigid accounting of their income. 
There has been a general increase throughout the country in rates of tuition. In many 
cases, it is a question of securing a larger revenue for higher education, curtailing 
the amount of it, or cheapening the quality. These alternatives are presented to Okla¬ 
homa at the present time. It is not likely that the legislature will eliminate any of 
the colleges, nor is it likely to increase the state’s contribution to support them. 
Hence, as a choice between cheapening the quality or increasing student tuition, in¬ 
creasing tuition seems preferable. 

There aie other reasons than increased revenues for charging a reasonable tuition. 
Students who make a sacrifice are usually more appreciative of a privilege than when 
it is provided gratuitously. In cases where a student ilsif unable to pay tuition, the state 
could well afford to supply scholarships for worthy, capable students; but. for those 
able to pay, a reasonable fee should be charged. This fee for the junior college might 
be a round $20.00' per student. But. for senior college students it should be somewhat 
higher, and considerably higher for graduate students. As pointed out previously, the 
graduate departments of the University do not serve equally all parts of the state. 

-VI.students should he charged a small annual tuition; In junior college about $20 00 and in 
the senior about $50.00; and a considerably higher tuition should be charged for a professional 
course such as law, medicine, and engineering, perhaps $150.00 or $200.00, (illowing for an ade¬ 
quate differential in favor of residents of the, state, as against non-residents. A system of 
scholarships should be provided as aids to worthy students that are unable to pay tuition. 







ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


(>5 


TABLE X 

TOTAL PLANT INVESTMENT AT STATE-SUPPORTED INSTITUTIONS OF HIGHER LEARNING 


Name of Institution 

Land and 
Improvements 

Buildings 


Equipment 

Total Plant 
Investment 

University of Oklahoma _ 

$ 415,548.04 

$ 2,920,450.00 

$ 

1,638,988.05 

$ 4,974,986.09 

Oklahoma College for Women 

74,486.75 

1,055,389.32 

239,003.94 

1,368,880.01 

Colored A. and N. University 

40,581.00 

575,970.00 


25,395.00 

641,946.00 

Total 

530,615.79 

4,551,809.32 


1,903,386.99 

6,985,812.10 

Oklahoma A. and M. College 

303,076.49 

2,346,793.75 


1,085,400.33 

3,735,270.57 

Cameron State Agricultural College _ 

42,396.42 

176,469.04 


47,437.23 

265,902.69 

Connors State Agricultural College _ 

25,740.00 

220,067.91 


74,922.63 

320,730.54 

Panhandle A. and M. College _ 

31,955.98 

406,276.49 


87,547.98 

525,780.45 

Murray State School of Agriculture - 

21,534.21 

144,289.05 


61,102.15 

226,925.41 

Total _ _ _ 

424.703.10 

3,293,496.24 


1,356.410.32 

5,074,609.66 

Central T&chers College 

116,328.03 

526,725.35 


134,714.89 

ff 

777,768.27 

East Central Teachers College _ _ 

72,979.31' 

4S3.265.44 1 


124,319.87 

680,564.62 

Northwestern Teachers College _ 

23,285.28 

301,848.39 


105,881.49 

431,015.16 

Northeastern Teachers College _ _ 

51,239.00 

348,225.56 


125,133.75 

524,618.31 

Southeastern Teachers College 

73,792.37 

520,385.40 


125,269.91 

719,447.68 

Southwestern Teachers College 

46.433.43 

361,933.16 


111,064.31 

519,430.90 

Total 

384,057.42 

2,542,383.30 


726,404.22 

3,652,844.94 

Eastern Oklahoma Cnllpfrp . 2 

N. E. Oklahoma Junior College 

12,734.19 

150,090.90 


20,189.23 

183,014.32 

Oklahoma Military Academy 

University Preparatory (School and 

16,450.00 

410,957.42 


64,209.15 

491,616.57 

Junior College .. _ 

34,000.00 

385,000.00 


143,966.71 

562,966.71 

Total _ _ ... 

63,184.19 s 

946,048.32 s 


228,365.09 s 

1,237,597.60 s 

GRAND TOTAL 

_ $1,402,560.50 3 

$11,333,737.18 s 

$ 

4,214,566.62® 

$16,950,864.30 s 


COST OF SCHOOL PLANT 

Table XI gives an idea of the amount of money invested in property used by in¬ 
stitutions of higher learning. Since most of these buildings) have been built in less 
than a quarter of a century, Oklahoma has had a comparatively heavy annual outlay 
for college buildings. A number of buildings are needed. Many of the institutions are 
in need of libraries, laboratories, recreation halls, training schools, additional class 
rooms, and practically all are short on equipment of one kind and another. Oklahoma 
will need to put a considerable amount of money into buildings for a number of years 
if adequate housing facilities are to be provided. If the present number of junior 
colleges is continued, they will need a good deal of money for suitable buildings. A 
thorough survey of present building conditions and an analysis of the functions of 
each institution should be made before planning many new buildings. 

TABLE XI 

EXPENDITURE FOR BUILDINGS, IMPROVEMENTS AND NEW EQUIPMENT 
ON EACH CAMPUS FOR 1933-34 


Name of Institution 


Buildings and 

Equipment Improvements Total 


University of Oklahoma _ 

Oklahoma College for Women _ 

Colored A. and N. University _ 

Oklahoma A. and M. College_ 

Cameron State Agricultural College 
Connors State Agricultural College _ 

Panhandle A. and M. College_ 

Murray State School of Agriculture 


$31,892.38 $10,861.46 $42,753.84 


8,489.08 2,817.30 11,306.38 

40,286.92 19,489.04 59,775.96 

956.69 1,974.77 2,931.46 

480.46 _ 480.46 

8,244.74 _ 8,244.74 

708.25 921.62 1,629.87 


^Financial Report combined Land and Improvements and Buildings, arbitrarily separated 
on same percentage basis as other teachers colleges. 

^Figures not yet submitted. 

Exclusive of figures for Eastern Oklahoma College. 






















































60 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


Name of Institution 


Central Teachers College _ 

East Central Teachers College _ 

Northwestern Teachers College _ 

Northeastern Teachers College _ 

Southeastern Teachers College _ 

Southwestern Teachers College _ 

Eastern Oklahoma College 1 _ 

N. E. Oklahoma Junior College _ 

Oklahoma Military Academy 1 _ 

University Preparatory School and Junior College 


Euuipment 

Buildings and 
Improvements 

Total 

3,386.79 

7,235.64 

10,622.43 

2,984.48 

267.22 

3,251.70 

2,223.23 


2,223.23 

4,939.94 

3,792.72 

8,732.66 

6,061.80 

15,004.56 

21,066.36 

1,929.73 

1,354.31 

3,284.04 

720.82 

219.45 

940.27 

2,534.28 


2,534.28 


Table XI shows that little building was done during the past year. 


TABLE XII 

BESIDENT INSTRUCTION COST PER STUDENT IN STATE-MAINTAINED INSTITUTIONS 

FOR THE SCHOOL A EAR 1933-34 


Name of Institution 


University of Oklahoma _ 

Oklahoma College for Women _ 

Colored A. and N. University ___ 

Total _ 

Oklahoma A. and M. College _ 

Cameron State Agricultural College - 

Connors State Agricultural College --- 

Panhandle A. and M. College _1_ 

Murray State School of Agricultural - 

Total _ 

Central Teachers College _ 

East Central Teachers College _ 

Northwestern Teachers College _ 

Northeastern Teachers College _ 

Southeastern Teachers College ___ 

Southwestern Teachers College _ 

Total _ 

Eastern Oklahoma College _ 

N. E. Oklahoma Junior College _ 

Oklahoma Military Academy _ 

University Preparatory School and Junior College 

Total_ 

GRAND TOTAL _ 


Total Cost 

Average 

Resident 

of Resident 

Enrolment 

Instruction Cost 

Instruction 

1933-34 

Per Student 

$ 915,557.27* 

5,299.58 

$172.76* 

95,693.48 

768.13 

124.58 

57,462.95 

647.38 

88.76 

1,068,713.70 

6,715.09 

159.15 

- 595,162.44 

3,263.68 

182.36 

29,562.75 

476.70 

62.02 

19,048.00 

168.70 

112.91. 

47,114.00 

314.30 

149.90 

32,595.58 

223,60 

145.78 

723,482.771 

4,446/99 

. 162.69 

93,492.52 

1,487.05 

62.87 

112,553.28 

1,448.30 

77.71 

75,055.62 

882.50 

85.05 

88,494.45 

1.086.75 

81.43 

109,586.50 

942.75 

116.24 

76.406.98 

1,061.00 

72.01 

555,589.35 

6,908.35 

$0.42 

y 

196.00 

3 

18,773.27 

276.80 

67.82 

19,738.74 

105.75 

186.65 

42,150.63 

363.77 

115.87 

80,662.64* 

942.32 

85.60 

. $2,428,448.46* 

19,012.75 

$127.73 


Cost of Instruction. Table XII gives interesting information. It is not always 
safe to judge efficiency by the per capita cost of students. One must always consider 
the type of work offered and the number to whom it is offered. There is less danger 
of forming rash conclusions from per capita figures based on the cost of instruction 
alone, than on the total cost, including equipment, building and other outlay. 

The per capita cost at the University of Oklahoma is $172.76, not excessive for 
efficient instruction at the university level. The per capita cost of instruction at the 
A. and M. College is $182.36, again, not excessive; but one fails to see why it should 
be higher than at the University. Certainly, the state cannot find fault with the cost 


"Figures not yet submitted. 

2 Does not include maintenance cost of University Hospital, 
financial report not yet submitted. 

"Exclusive of figures for Eastern Oklahoma College. 




























































ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


67 


of instruction in either of these institutions. The chief danger is that these institu¬ 
tions may not be able to hold their best professors. 

The variation in cost of the other agricultural colleges can be explained, in part 
at least, by the number enrolled. The Cameron State College with 476 students has 
a per capita cost of $62.02. At Murray State College, with only 223 students, it is 
$145.78. The low per capita cost at Connors State College can he explained by the 
fact that that institution is decidedly undermanned for college work. 

The outstanding mystery revealed in Table XII is the fact that instruction in 
state teachers colleges can be provided at a per capita cost of $80.42. One might 
suspect, at first sight, that the state was employing convict labor to train teachers. 
It costs $162.69 ton train students in agriculture to raise livestock, and only $80.42- to 
train those who instruct children. The enrollment figures suggest that mass produc¬ 
tion is operating to reduce costs. Fortunately, the size of each institution 1 is such 
that maximum economy can be exercised. 

The teacher is the most important factor in the entire educational organization; 
and these institutions should be equipped as teacher's colleges and maintained on a 
high plane. Large schools can| be maintained at a smaller per capita cost. United States 
Office of Education Bulletin No. 20, 1931 (Vol. 1, page 517), stated: 

In the state teachers colleges, institutions with an average annual enrolment of fewer 
than 400 have an average per capita cost of $439.67, while schools having an enrolment of 
2,000 or more show an average annual per capita cost of $263.46. It is evident, therefore, 
that states that have adopted the policy of establishing a number of small teacher-preparing 
institutions miss the mark widely if they wish to reduce the cost of their teacher-preparing 
program. 

The prospective teachers trained at teachers colleges alone numbered 6,913, to say 
nothing of those trained at denominational colleges, the University, the A. and M. 
College, and the Women’s College. The number of such institutions is under legis¬ 
lative control. The standards of quality in teacher-training is, or should be, con¬ 
trolled by the State Board of Education, which is held responsible for protecting the 
school children of the state and should he in a position to insist upon a standard 
quality of teacher-training. This quality is likely to cost a standard price, whether 
it is provided in Oklahoma, California, or New York. Low costs in these institutions 
mean one of two things: either the staffs are woefully underpaid, or an inferior qual¬ 
ity of teacher-training is provided. 

Appropriations. From the standpoint of effective school administration, both the 
state appropriations and the institutional funds should be placed at the disposal of 
the institutions in the simplest possible manner. Oklahoma is following the correct 
procedure in this respect. The legislature should make its appropriations on the basis 

of the respective needs of the higher institutions. It should not be called upon to 

enact into law all or any part of the individual items contained in the operating budgets. 
If the Board and the institutions are to be held responsible for dealing with the 
changes which are bound to prove necessary within the biennium following the meet¬ 
ing of the legislature, it must have the liberty, with the approval of the Governor, 
of making changes in the original estimates. The legislature should make appropria¬ 
tions under two general headings, namely, capital outlay, including land and buildings; 
and operation and maintenance, including salaries, equipment, supplies, and upkeep. 
The Board should not be given authority to transfer appropriations for land or build¬ 
ings to operation, nor from operating appropriations to land and buildings. In order 

that there may be no question as to the responsibility for the wise expenditure of 
the funds appropriated to the institutions, the administration of them should be left 
to the board or boards in control, and their chosen representatives at the institutions, 
subject however to allotment by the Governor. 


68 ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 

FACULTIES 


TABLE XIII 

DEGREES HELD BY FACULTY MEMBERS AT STATE-SUPPORTED INSTITUTIONS 

OF HIGHER EDUCATION 


Name of 

Institution 

Ph. D. 

Master Bachelor No Degree 

Total 

University of 

Oklahoma _ 

93 

106 

51 

11 

261 

Oklahoma College for Women 

8 

17 

14 

7 

46 

Colored A.“and N. University 

1 

15 

16 

2 

34 

Oklahoma A. 

and M. College 

55 

127 

37 

6 

225 

Cameron State Agricultural College 

1 

13 

9 

— 

23 

Connors State 

Agricultural College- _ 

_ _ 

_ 

_ - 

_ 


Panhandle A. 

and M. College 

1 

13 

6 

— 

20 

Murray State 

School of Agriculture 


10 

6 

— 

16 

Central Teachers College 

5 

39 

8 

1 

53 

East Central 

Teachers College 

. __ 6 

38 

17 

_ 

61 

Northwestern 

Teachers College 

2 

28 

10 

_ 

40 

Northeastern 

Teachers College 

7 

28 

3 

— 

38 

Southeastern 

Teachers College 

4 

31 

5 

— 

40 

Southwestern 

Teachers College 

_ 5 

21 

8 

— 

34 

Eastern Oklahoma College 1 


__ 

_ 

_ 

— 

N. E. Oklahoma Junior College 


8 

3 

1 

12 

Oklahoma Military Academy 


3 

7 

2 

12 

University Preparatory School and Junior College 


13 

6 

3 

22 


Total _ 188 510 206 33 937 


Table XIII shows the number of faculty members and the degrees held by each, 
indicating considerable differences with regard to academic qualifications. Of course, 
the degree a teacher hold's does not conclusively determine his fitness to teach. There 
is a difference in the standards of different universities. Work required by some uni¬ 
versities for a Bachelor’s degree may be as high as that extracted by another univer¬ 
sity for a Master’s. 


TABLE XIV 

PERCENTAGE OF FACULTY MEMBERS HOLDING EACH DEGREE 
IN STATE-SUPPORTED INSTITUTIONS 


Nanig of Institution 


Ph. D. 

Master 

Bachelor 

No Degree 

Total 

University of Oklahoma 


36 

41 

20 

4 

100 

Oklahoma College for Women 


17 

37 

31 

15 

100 

Colored A. and N. University 


3 

44 

47 

6 

100 

Oklahoma A. and M. College 


. 24 

56 

17 

3 

100 

Cameron State Agricultural College 


4 

57 

39 

_ 

100 

Connors State Agricultural College . 1 




— 

— 

— 

Panhandle A. and M. College 


5 

65 

30 

_ 

100 

Murray State School of Agriculture 



63 

37 

— 

101 ) 

Central Teachers College 


9 

74 

15 

2 

100 

East Central Teachers College 


10 

62 

28 

_ 

100 

Northwestern Teachers College 


5 

79 

25 

_ 

100 

Northeastern Teachers College 


19 

73 

8 

_ 

100 

Southeastern Teachers College 


10 

78 

12 

_ 

100 

Southwestern Teachers College 


15 

62 

23 

— 

100 

Eastern Oklahoma College 1 






__ 

N. E. Oklahoma Junior College 



67 

25 ' 

8 

100 

Oklahoma Military Academy 



25 

58 

17 

100 

University Preparatory School and Junior College 

_ 

_ 

59 

28 

13 

ioo 


Average _,_ 20' 55 22 3 100 


Table XIV shows the percentage holding each degree in each institution. The 
University, naturally, has the largest percentage holding Ph. D. degrees. In fact, both 
the University and the A. and M. College have a reasonably large percentage of doctors. 
Master’s degrees, appearing in such large percentages, leads one to inquire where the 
degrees are attained. 


, Figures not submitted. 














































ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


69 


TABLE XV 

INSTITUTIONS FROM WHICH FACULTY MEMBERS IN OKLAHOMA EDUCATIONAL 
INSTITUTIONS TOOK MASTER’S DEGREES 1 




Oklahoma 

Harvard 

Yale 

State 

Univer- 



Oklahoma 

A. and M. 

Chicago 

sities 

All 

Name of Institution 

University 

College 

and 

Columbia 

Outside 

Oklahoma 

Others 


University of Oklahoma _ 51 25 

Oklahoma College for Women _ 1 9 

Colored A. and N. University ____ _ 2 

Oklahoma, A. and M. College _ 6 28 29 

Panhandle A. and M. College _ 3 4 1 

Cameron State Agricultural College _ 6 7 

Murray State School of Agriculture_,_ 2 6 

Connors State Agricultural College 3 __ 

Central Teachers College _ 13 8 3 

East Central Teachers College _:_ 8 4 14 

Northwestern Teachers College _ 8 7 2 

Southwestern Teachers College _ 7 15 

Northeastern Teachers College _ 5 6 8 

Southeastern Teachers College _<_10 2 6 

Eastern Oklahoma College 2 _ — 

N. E. Oklahoma Junior College_._ 5 12 

Oklahoma Military Academy ___ 2 

University Preparatory School and Junior College - 4 13 


23 

10 

6 

65 

r. 


l 


3 

7 

8 
5 
5 


3 


19 

5 

9 

9 


11 

7 

3 

5 

6 

10 

1 

1 

1 


Total 


131 75 109 146 87 


Table XV shows from what institutions the faculty members received their master's 
degrees. It appears that a total of 131 master’s degrees were taken at Oklahoma Uni¬ 
versity ; 75 at the A. and M. College; 109 at Harvard, Yale, Chicago, or Columbia; 
146 at other state universities; and 87 at other institutions. In general, the quality 
of the master's degree seems fairly good. At the University, 51 of the 118 master’s 
degrees were obtained at the University of Oklahoma; but this possible Inbreeding 
tendency at the University is not followed in the selection of Ph. D. professors. The 
A. and M. College has a much larger percentage of her masters from Harvard. Yale, 
Chicago, and Columbia than has the University, and still larger percentage from other 
state universities. It seems especially unfortunate that the University lias employed 
no masters from the A. and M. College, and the A. and M. College has employed only 
six masters from the University, a situation that does not reveal mutual confidence. 
If more interchanges of this nature were made, it would be easier to coordinate the 
work of these two institutions. The other institutions seem more appreciative of local 
Institutions. 

TABLE XVI 

INSTITUTIONS FROM WHICH FACULTY MEMBERS IN OKLAHOMA EDUCATIONAL 
INSTITUTIONS TOOK DOCTORS DEGREES 


Name of Institutions 


Harvard 

University Yale, 
of Chicago 

Oklahoma and 

Columbia 


State 
Univer¬ 
sities All 

Outside Others 
Oklahoma 


University of Oklahoma _ 1 

Oklahoma College for Women - 1 

Oklahoma A. and IM. College _1- — 

Central Teachers College - 3 

East Central Teachers College - 1 

Northwestern Teachers College _ — 

Southwestern Teachers College - 1 

Northeastern Teachers College - 1 

Southeastern Teachers College - 

* 


35 

39 

16 

2 

4 

_ 

11 

35 

10 

l 

1 


i 

2 

4 

l 

2 

1 

i 

1 

1 


4 

2 

l 

2 

2 


Special degrees requiring the same amount of work as masters are included in this table. 
Unformation not available. 





































70 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


When the faculty members are classified according to the institutions from which 
they received their Ph. D. degrees, as in Table XVI, it is found that the University 
has 35 professors holding degrees from Harvard, Yale, Chicago, and Columbia. The 
A. and M. College, naturally, shows a majority of its Ph. D. professors trained at 
other state universities. On the other hand, only 5 of the doctors at the teachers 
colleges received their degrees at Harvard, Yale, Chicago, or Columbia. The number 
should be larger. Nevertheless, most of the doctor’s degrees held by the teacher col¬ 
lege faculty members are from reputable institutions. In general, creditable number 
of doctors are found in the state institutions of Oklahoma. While the percentage of 
teachers holding higher degrees is reasonably high, a number hold only the A. B. 

degree and some no degree at all. Some of these are undoubtedly excellent teachers 

and probably have held their places because of proved ability. Nevertheless, it seems 
that the supply of highly trained professors is such that Oklahoma might well adopt 
as a policy, in the selection of future faculty members, the appointment only of those 
holding doctor’s and master’s degrees in the ratio of 1 to 1. Thus, for every new 

member holding a master’s degree, there would be employed a member holding a 

doctor's degree. Those faculty members who have only the bachelor’s degree should 
be given an opportunity to qualify for the higher standard. The state would profit 
in the long run by establishing sabbatical leaves or some form of half-pay scholarships 
in order to encourage further training. 

Personality in Teaching. Academic standards alone will not guarantee an ideal 
college faculty. Faculty members must possess personalities suited to their work. 
Their passport to continued service should be demonstrated efficiency. Oklahoma has 
not given to the selection of teaching personnel the consideration it deserves. The 
ruthless manner in which some of thej ablest school men and women in Oklahoma have 
been dismissed from state colleges and public school systems must profoundly dis¬ 
courage young men and women from preparing for a career in education or, for that 
matter, in any other branch of public service. 

Organization of College Staff. Table XVII presents the percentages of faculty 
members of various ranks, compared with similar institutions in other states. Okla¬ 
homa institutions must, of course, compete with outside institutions in obtaining and 
retaining staff members. Comparalfie data are found in seven North Central states, 
namely Illinois, Indiana, Iowa, Michigan, Minnesota, Ohio, and Wisconsin. 


TABLE XVII 

COMPARISON OF PERCENTAGES HOLDING THE SEVERAL RANKS IN OKLAHOMA 
AND IN SEVEN NORTH CENTRAL STATES 



Deans and 

Associate 

Assistant 



Professors 

Professors 

Professors 

Instructors 

Seven North Central States 

27.2 

11.2 

22.9 

38.7 

Oklahoma State Institutions 

38.0 

21.7 

22.9 

18.0 

Oklahoma University 

26.0 

20.0 

34.0 

20.0 

A. and M. College 

28.0 

28.4 

29.3 

"'>13.0 

Oklahoma College for Women 

39.0 

19.5 

21.7 

19.5 

Teachers Colleges 

50.0 

26.7 

14.0 

9.0 

All Other Institutions in Oklahoma 

53.0 

5.0 

6.0 

36.0 


Standards of instruction are affected by the organization of instructional staffs as 
much as by the average salaries paid. By the organization of instructional staffs is 
meant the proportion of staff members holding the ranks of professors, associate pro¬ 
fessors, assistant professors, and instructors, respectively. Too large a proportion of 
faculty members in the higher ranks is symptomatic of a policy of advancing staff mem¬ 
bers in title as a reward for long service instead of advancing them upon the basis 
of merit. Particularly in institutions where funds are somewhat limited, promotion 
in rank may be, and often is. passed out in lieu of a salary increase. In the seven 
North) Central states, only 38.4 per cent of the faculty hold a rank, above the assistant 
professor. The median person in the seven North Central states is ap assistant pro¬ 
fessor ; whereas the median person in Oklahoma is an associate professor. Only 2G 
per cent of the University faculty rank as deans and professors, 20 per cent as as- 












ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


71 


sociate professors, 34 per cent as assistant professors, and 20 per cent as Instructors. 
This is a much better showing than the state as a whole. The A. and M. College has 
about the same percentage of deans and professors as the North Central colleges, but 
has 28.4 per cent of its faculty in the rank of associate professors, whereas only 11.2 
per cent of the faculty have this rank in the North Central states. The percentage 
in the Women's College are still less favorable, and the percentages in teachers colleges 
make a decidedly poor showing. Where 76.7 per cent of the faculty are professors, 
associate professors, and deans, it looks as if the standards for the rank were thrown 
to the winds. 

Number of Departments. Another indication of a well-organized staff is a com¬ 
paratively small number of department heads. The University has 34 separate de¬ 
partments ; the A. and M. College has 33; the Women’s College, 14; and the teachers 
colleges range from 13 to 18. Evidently the same tendency prevails here as in the 
assignment of ranks. The distinction of being the head of a department in a university 
or college is not much distinction where there are 199 such head proressors in the 
state-supported colleges of the state. Obviously, Oklahoma cannot afford to pay out¬ 
standing professors as heads of departments. 

Salaries of Faculty Members. Table XVIII gives the average salaries paid faculty 
members in state-supported institutions, including summer school salaries. Institu¬ 
tions of the same general type, unless too small to function economically, should have 
more or less equal salary schedules. In some instances, the salaries of full-time in¬ 
structors and assistants are low for college teachers. Since the salaries quoted in 
Table XVIII are averages, many salaries must be considerably below standard. Sal¬ 
aries paid to professoTs and associate professors are below the standards set in most 
institutions of higher education for those ranks; but, since the rank of assistant in 
standard colleges is equal to that of associate professor in the University and A. and 
M. colleges, and to that of professor in the teachers colleges, not much can be said 
for increase in salaries until the standards as indicated by\ ranks are raised. Salaries 
everywhere are now adjusted to a depression level. As the cost of living increases 
a!nd as competition decreases, teachers’ salaries should be made flexible so as to 
keep pace with salaries in other professions. 

CONCLUSIONS 

Oklahoma as compared with most of the other states in the Union has a large 
number of institutions of higher education. Considering the density of population in 
the various sections of the state, the institutions are fairly well located and yet the 
distances that students have to go to college vary greatly. The large number of col¬ 
lege students per 1,000 population is a strong argument for maintaining the present 
number of colleges. Oklahoma ranks eleventh among the 48 states In this respect. 
Institutions that are serving such a large number of young men and! women deserve 
support. Tlie failure of many of the colleges to maintain; proper standards is reflected 
in high schools and rural elementary schools. There ai*e marked variations with re¬ 
gard to the educational opportunities offered by the different institutions. Administra¬ 
tion in the future should seek to equalize these opportunities wherever possible. The 
number and function of some of the higher institutions should be adjusted to the 
needs of the state. Such a reorganization would avoid duplications and permit econ¬ 
omies that in turn could be made to improve standards. Oklahoma is deserving of 
the best leadership obtainable. If the higher educational system as a whole is re¬ 
moved from political control, these institutions can provide, in greater measure than 
in the past, the trained leadership needed by the state. It should be clearly under¬ 
stood, however, that no change in set-up will alone accomplish the purpose. The 
people of the state must adopt a new attitude toward their institutions; and gover¬ 
nors, in appointing members of the boards, must consistently select men and women 
of outstanding competence and high ideals. 


72 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


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CHAPTER V 
PUBLIC WELFARE 


For the fiscal year 1930-31 the state and its local units spent for the support of 
public welfare institutions, agencies, and services about $8,000,000. For the year 1933- 
34 disbursements were reduced to $6,500,000! To this last sum, however, should he 
added $22,000,000 2 spent through the Emergency Relief Administration. For the ap¬ 
plication and control of these expenditures, the state has a constitutionally created 
Commissioner of Charities and Corrections with only supervisory duties and with a 
total budget of $8,470 annually; a Board of Public Affairs which has control functions 
hut no constructive or carefully correlated program for the institutions under its con¬ 
trol ; a Commission for the Blind without funds and without a program; A Commis¬ 
sion of Pensions; a Soldiers’ Relief Commission interested in aid for a single group 
and lacking coordination with any general welfare program; a Deportation Officer 
who draws a salary of $200 a month. Emergency relief last year was in the hands 
of an administrator appointed directly from Washington because the state had not 
set up an agency for the administration of these fluids acceptable to the federal gov¬ 
ernment. 

Oklahoma arrived at statehood when one of the phases of the evolution of public 
welfare administration in this country was drawing to a close. When the Oklahoma 
Constitution created a supervisory Commissioner of Charities and Corrections, older 
states were already finding their boards of charities with mere supervisory powers, 
inadequate. The concept of a distinct field of governmental service, preventive and 
constructive as well as remedial, was forming. By 1917, this concept had in many 
states taken quite definite form; and since that time there has been a rapid develop¬ 
ment in volume of work and in techniques and in centralized state administrative 
organization to handle the work. 

Oklahoma also has felt the need for centralized institutional administration and 
has attempted to meet this need, first by placing her children's institutions under a 
single board of managers and later by consolidating this beard with the Board of 
Public Affairs. Aside from a constitutional obstacle, therefore, Oklahoma, as she con¬ 
templates the reorganization of her public welfare services, has an easier task than 
many another state where each institution was or still is under a separate managing 
board. 

STATE AGENCIES 

State agencies performing public welfare functions include: the Commissioner of 
Charities and Corrections; the State Board of Public Affairs; the Board of Managers 
of Children’s Institutions; the Board of Commissioners for the Blind; the Soldiers’ 
Relief Commission; the Commissioner of Pensions; the State Emergency Relief Ad¬ 
ministrator; the Bureau of Pardons and Paroles; and the Deportation Officer. 

Conunissioner of Charities and Corrections. The Constitution provides that a Com¬ 
missioner of Charities and Corrections shall be elected in the same manner, at the 
same time, and for the same teim as the Governor. The Commissioner may be of 
either sex, must be 25 years of age or over, and in all other respects shall have the 
qualifications which shall lie required of the Governor; 3 namely, that he “shall have 
been three years next preceding his; election, a qualified elector of this State.” 4 

The Constitution makes it the duty of the Commissioner to investigate the entire 
system of public charities and corrections of the state; to examine into the condition 
and management of all prisons, jails, reformatories, reform and industrial schools, 
almshouses, hospitals, infirmaries, dispensaries, orphanages, and public and private 
retreats and asylums, which are supported in whole or in part from public funds. In 


’Figures compiled by Oklahoma State Chamber of Commerce. 
“Statement of Emergency Relief Administrator. 

“Art. VI, Sec. 27. 

’Art. VI, Sec. 3. 



74 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


the performance' of these duties the Commissioner may require in writing information 
from officials of any institution under supervision, may summon persons and papers, 
and may exercise the powers of a notary public in Liking depositions. The Commis¬ 
sioner reports to the Governor on investigations and makes a “full and complete” 
report to the Governor on the first day of October of each year. 1 

The statutes have defined certain of the Commissioner’s duties somewhat more 
in detail and have added other powers and duties. Among the duties thus defined 
or added are the following: 

To visit and inquire into the condition and management of all state penal and 
correctional institutions, and all eleemosynary institutions of whatever name or char¬ 
acter at least once a year. 2 

To visit all county penal, correctional, and charitable institutions at least once 
a year and make recommendations in writing to the board of county commissioners. 3 4 5 * 

To visit all city jails, holdovers, hospitals, dispensaries, and all other city penal, 
correctional, and charitable institutions at least once a year and make recommenda¬ 
tions in writing concerning their management and condition to the mayor and city 
council- 4 1 


At the request of the Governor, or with his sanction, to make special investigations 
of state penal, correctional, or charitable institutions and to report to the Governor.® 

To inspect and license for one year hospitals, infirmaries, dispensaries, retreats, 
lying-in hospitals, rescue homes, orphanages, and foundling institutions. 8 

To examine complaints against any type of institution enumerated in the last 
paragraph, or any baby farm or orphanage of whatever name or character and to 
close such institution if the investigation warrants this course. 7 

To issue certificates to “orphanage children’s "aid home-finding societies, and all 
other similar organizations” and to revoke such certificates for cause and ask that 
the charter of sluch organization be revoked. 8 

Upon sworn complaint of any citizen, to investigate and order abatement of wrong¬ 
ful conditions in any county, city, or private institution, or organization under the 
supervision of the Commissioner, and to prosecute in case of failure to obey such 
order. 9 

To appear as next friend in all actions concerning minor orphans, dependents, de¬ 
fectives, and delinquents. 10 

To receive annual reports from county court clerks on the number and disposition 
of cases of delinquent children handled by the court. 11 

These duties involve G19 public and private institutions and agencies. In her re¬ 
port for the year 1929, the Commissioner says: 

In the past the Commissioner has been allowed by the Legislature five assistants, i. e. 
two assistant commissioners, two inspectors, and one stenographer. The Eleventh Legisla¬ 
ture (1926) cut this number to one assistant commissioner and one stenographer. 12 


For 1930 and 1931. under the head of Extra Help, the Commissioner was allowed, 
in the appropriations, three inspectors and one extra stenographer. The appropriation 
for these assistants was vetoed by the Governor because the positions had not been 
created by statute. The staff of the Commissioner now consists of one assistant com¬ 
missioner and one stenographer. Recent appropriations for the support of the office 
have been: 1930, $19,401.75; 1931, $19,401.75; 1932, $14,350: 1933, $14,350- 1934, $8 470- 
1935, $8,470. 


1 Const. Art. YI, Sec. 29. 

2 Stat. 1931, Sec. 3601. 

s Stat. 1931, Sec. 3602. 

4 Stat. 1931. Sec. 3603. 

5 Stat. 1931, Sec. 3604-5. 

*Stat. 1931, Sec. 3606. 

7 Stat. 1931, Sec. 3607. 

8 Stat. 1931, Sec. 3608. 

®Stat. 1931, Sec. 3609. ’ 

10 Stat. 1931, Sec. 3616. 

J1 Stat. 1931, Sec. 1732. 

12 Report of the Commissioner of Charities and Corrections, Jan. ], 1929 to Jan. 1, 1930, p. 7. 



ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


75 


State Board of Public Aft airs. The Board of Public Affairs is created by statute. 
It consists of three members appointed by the Governor and approved by the Senate, 
for a term of four years. Not more than two may, be of the same political party. The 
Board ha s general financial supervision of all state institutions and control of the 
construction, repair, and maintenance of buildings, and the purchasing of materials 
and supplies. 1 “ The government and sole and exclusive control” of the several hos¬ 
pitals for the insane is vested in the Board. This includes ‘‘the general direction and 
control of all the property and concerns” of the several hospitals; appointment of 
the medical superintendent and, upon his nomination, members of the hospital staff ; fix¬ 
ing of salaries; establishment of rules and regulations for the appointment and duties 
of officers, attendants, assistants, and employees; determining the conditions of ad¬ 
mission, support, and discharge of patients, and of the internal government, discipline, 
and management of the hospitals; maintenance of an effective inspection, for which 
purpose a committee shall visit each hospital once every three months and the whole 
board at least once a year; and the making of a detailed report to the Governor in 
January of each alternate year. 2 The Board has the appointment of the wardens and 
other personnel of the state prisons. 3 The Board of Public Affairs has “jointly with 
the State Board of Public Health,” the supervision of the revolving fund of the State 
Tuberculosis Sanatoria. 4 Finally this Board has the administration of a fund for the 
support of dependent children not in state institutions. 5 

Apparently without legal authority, the powers of the Board of Managers of Chil¬ 
dren’s Institutions have been transferred to the Board of Public Affairs by appointing 
the three members of the Board! of Public Affairs as the Board of Managers of Chil¬ 
dren’s Institutions, in lieu of the five members provided by law. Thus, the Board has 
control of the four industrial schools for delinquent children, the two state homes for 
dependent white children, and the Deaf, Blind, and Orphans’ Home for Negro children. 

Potentially a powerful agency in the control and direction of the charitable and 
correctional institutions, the Board of Public Affairs has failed to formulate any pro¬ 
gram for the work of these institutions or to set up standards for the selection of per¬ 
sonnel on a basis of merit. The Board has been mainly an agency for the purchase 
of materials and supplies and for the appointment of personnel, quadrennially, on a 
patronage basis. 

In addition to its three members, who are full time salaried officers, the Board 
has an office staff of 18 with total of payroll of $37,760 a year. Recent appropriations 
for administrative purposes have been: 1930, $58,000; 1931, $58,000; 1932. $56,900; 1933, 
$56,400; 1934, $43,960; 1935, $43 960." 

Welfare expenditures by the Board and the institutions under its control have 
been as follows; 


General Supervision : 

State Board of Public Affairs'' _ 

Charities : 

Care of children in State Institutions- 

Other care of children - 

Care of blind, deaf and mute ___ 

General State hospitals____ 

State insane hospitals _„_ 

Home for feeble minded___ 

Total charities _ 

Corrections : 

Adults _ 

■Minors __— - 

Pardon and paroles _ 

Total" corrections -- 

Grand tStal: charities, hospitals and corrections 


1932-3 


21 , 000.00 


163,539.86 

14,656.25 

112,358.67 

556,354.47 

1,227,889.84 

135,888.34 

2,210,687.43 


1,003,550.10 

475,515.69 

5,500.54 

1.484,566.33 

3.716,253.76 


1933-4 


$ 21,000.00 


121,918.08 

14,323.98 

86,326.45 

452,813.75 

1,079,304.87 

115,030.71 

1,869,717.84 


1,177,310.36 

395,205.72 

4,971.13 

1,577,487.21" 

3,468,205.05 


hStat. 1931, Secs. 3569-3600. 
2 Stat. 1931. Sec. 5000. 

3 Stat. 1931, Sec. 5352. 


4 Stat. 1931. Sec. 5453. 

“Laws, 1933. Chap. 81. 

•Laws, 1929, 1931, 1933, Appropriations. 


’Estimated as applicable to institutions under its control. 
































7G 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


Board of Managers of Children’s Institutions. An act approved March 29, 1919 
created a Board of Managers of Children’s Institutions composed of five members ap¬ 
pointed by tlie Governor without term. At this time the Board of Public Affairs had 
been in existence for ten years. The act provides that the Board of Manageis shall 
select the superintendent, matron, and other officers and employees of the seven institu¬ 
tions placed under its control. The Board is also empowered to employ an industrial 
supervisor for these institutions. The act fixed a salary of $150 a month and neces¬ 
sary expenses for the industrial supervisor and a per diem of six dollars and neces¬ 
sary traveling and hotel expenses for the members of the Board. 1 As stated above, 
the duties of this Board have been transferred to the Board of Public Affairs. 

Board of Commissioners for the Blind!. The Commission for the Blind is a nou- 
salaried board, created by statute in 1919 and consists of five members appointed by 
the Governor for a term of four years. The President of the State Association for the 
Blind must be a member. The Board 'employs a secretary and a home teacher. The sec¬ 
retary is designated field worker and must devote bis time to obtaining information con¬ 
cerning- adult blind and finding employment for them. He makes financial reports quart¬ 
erly to the State Auditor and to the Board of Public Affairs and annually to the Gov¬ 
ernor. 2 * Appropriations for the Commission have been : 1930, $7.575; 1931, $7,425; 1932, 
$0,500; 1933, $6,500; 1934, $4,825; 1935, $4,825.* 

Formerly the legislature provided for the salary of a stenographer. Now there is 
only the secretary and one home teacher. The secretary has all the office work. She re¬ 
ports visits to 297 homes in 1934. The home teacher gave 805 lessons within the year. 
Out of her salary of $1,5001 a year she pays a guide. There is aid in an occasional case 
of failing sight that! comes to the attention of the workers, but no program of preventive 
work. 

Soldiers’ Relief Commission. The Soldiers’ Relief Commission, created by statute in 
1921, comprises three members appointed by the Governor from a list of ten, five from 
each of the two major political parties, furnished by the American Legion. Not more 
than two of the members of the Commission may belong to one political party. Mem¬ 
bers of the Commission serve two years and are paid a per diem and actual expenses. 
Among the legally prescribed duties of the Commission are the following: 

To do and perform all acts necessary or proper to afford emergency, temporary and per¬ 
manent, relief for honorably discharged, disabled and diseased ex-service persons of the late 
World War and other wars of the United States of America and ex-Confederate Soldiers. 

To select and procure a site in or near the Platt National Park, Sulphur, for a permanent 
Tubercular Sanitarium, and to erect and establish such sanitarium for tubercular ex-service 
persons. 

To select a site for and to erect and establish a general hospital and vocational training 
building to be known as the Oklahoma Soldiers’ Memorial Hospital. 

To direct the building of a separate ward building at the Central Oklahoma State Hospital, 
to be devoted exclusively to the care and treatment of honorably discharged ex-service persons 
of the late World War, and other wars of the United States of America, and ex-Oonfederate 
Soldiers, suffering from mental and nervous afflictions. 4 

To administer a fund “for aiding the minor dependents of destitute, disabled and 
diseased soldiers, sailors, nurses and marines, of the late World War, Philippine Insur¬ 
rection and Boxer Rebellion."' 

Appropriations for the Commission have been: 


1930 


Administration -$11,860 

Relief _T5.000 

Trial _■-$86,860 


1 Stat. 1931, Sees. 5147 f olol. 

2 Stat. 1931, Secs. 4359-4364. 

"Laws. 1929, 1931. 1933. Appropriations. 

4 Stat. Secs. 12084-12100. 

Taws, 1931, p. 17. 


1931 

1932 

1933 

1934 

1935 

$11,860 

$ 14,000 

$ 14,000 

$ 8,950 

$ 8,950 

75,000 

110,000 

110,000 

72,500 

72,500 

$86,860 

$124,000 ' 

$124,000 

$81,450 

$81,450 




















ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


77 


The Commissioner of Pensions, appointed by the Governor for a four-year term, must 
be a Confederate Veteran or a descendant of a Confederate Veteran. 1 He administers) the 
Confederate pension fund. Appropriations for the current biennium are: 


1934 


1935 


Commissioner _$ 1,005.00 

Secretary _ 1,200.00 

Extra Help _ 1,200.00 

Communication _ 400.00 

Office Supplies _ 150.00 

Office Equipment _ 50.00 

Payment to Confederate Soldiers _ 447,760.00 


$ 1,500.00 

1,200.00 
1,200.00 
400.00 
150.00 
50.00 
447,760.00 


Total 


$452,260.00 


$452,260.00 


Emergency Relief Administration. The legislature of 1931 created an advisory con¬ 
gressional committee in each congressional district. The Board was charged with the 
distribution of relief funds; but the actual distribution of funds was to lie made by 
requisition upon the State Auditor signed by the Governor as authorized by a majority 
of the Emergency Relief Board. Upon the receipt of such requisition the State Auditor 
would issue a warrant directing the State Treasurer to pay the amount specified to the 
treasurer of the county designated. Within the county, the county commissioners acting 
jointly with the county judge, were to use the money to provide food, clothing, fuel, and 
shelter, under such rules and regulations as the State Emergency Relief Board might 
prescribe. The legislature appropriated $300,000 for emergency relief. 2 This organiza¬ 
tion ceased to function February 26, 1934 when the Federal Emergency Relief Administra¬ 
tion. dissatisfied with the administration of relief in Oklahoma, assumed direct adminis¬ 
tration of federal relief funds within the state. 

With the inauguration of Governor Marland in January, 1935, the Federal Adminis¬ 
tration withdrew from the direct administration of federal relief funds in the state. 
These are now in the hands of an administrator appointed by the Governor and re¬ 
sponsible directly to him. The appointment of a board, however, has been under discus¬ 
sion in the legislature recently in session. Relief is now administered locally by county 
administrators appointed by the State Administrator. 

The total obligations incurred by the relief administration during the eleven months 
ending January 31, 1935, were $21,904,369.83. This financial burden was distributed as 
follows: 


Federal funds _._$18,582,759.07 

State funds _ 126,065.10 

Local funds _ 3,195,545.66 3 


Bureau of Pardon and Parole. The Constitution provides that “the Governor shall 
have power to grant, after conviction, reprieves, commutations, paroles, and pardons 
for all offenses except cases of impeachment, upon such conditions and with such re¬ 
strictions and limitations as he may deem proper, subject to such regulations as may 
be prescribed by law.” 4 5 In 1908 the legislature created a Board of Pardons composed 
of the State Superintendent of Public Instruction, the President of the State Board 
of Agriculture, and the State Auditor. The act provides that the Superintendent of 
Public Instruction shall be chairman of the Board and the Secretary to the Governor 
shall be its secretary. This Board is required by law to hear applications for pardons, 
paroles, and commutations, file its decisions with the Secretary of State and transmit 
a copy of each decision to the Governor. The act reaffirms the constitutional j>ower 
of the Governor “subject, however, to the regulations hereinbefore prescribed.” 9 In 
1913 duties similar to those of the Board of Pardons were conferred on the Board of 

*Stat. 1931. Sec. 12642. 

Taws, 1931, pp. 354-5. 

’’Statement by State Emergency Relief Administrator. 

4 Const. Art. VI. Sec. 10. 

5 Stat. 1931, Secs. 3266. 3267. 























78 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


Prison Control whose functions have been transferred, to the Board of Public Affairs.’ 
In 1919, tbe legislature created a Bureau of Pardon and Parole consisting of a pardon 
attorney and a clerk and stenographer. The attorney, appointed by the Governor and 
serving at his pleasure, 2 acts as assistant to the Governor in preparing pardon and 


parole cases. 

Little could be learned at the office of the pardon attorney concerning the actual 
operation of the office. The present attorney has been in office less than a month. He 
knew that there is a large volume of correspondence and that there are 30,000 
records in his files. The week before the interview with the attorney, 27 cases had 
been considered and clemency bad been recommended 1 , in seven of these cases. 

Appropriations, for the Bureau of Pardon and Parole have been as follows 1930, 


$4,800; 1931, $4,800; 1932, $4,850; 1933, $4,850, 1934, $4,400; 1935, $4 400. 3 


STATE INSTITUTIONS 

“Educational, reformatory, and penal institutions and those for the benefit of the 
insane, blind, deaf and mute, and such other institutions as the public good may re¬ 
quire shall be established and supported by the State in such manner as may be pre¬ 
scribed by law.” 4 Under this constitutional provision the state maintains three institu¬ 
tions for dependent children, four for juvenile delinquents, four for physically handi¬ 
capped children, four hospitals for the insane, one institution for the feeble-minded, four 
correctional institutions, three institutions for veterans, two sanitoria for the tuberculous, 
and one general hospital. Direct expenditures! on these institutions amounted In 1930-31 
to $5,501,351 and in 1933-34 to $4,238,764. 

Institutions for Dependent Children. Of the institutions for dependent children, 
two of these, for white children, which under Oklahoma law means all children except 
negroes, are for the care of dependent children exclusively. The laws establishing these 
institutions indicate that they were intended to be primarily child-placing agencies ; 5 * 
but tbe act for the West Oklahoma Home provides also that the child may be kept as 
long as its best interests require.” While a considerable number of children are placed 
by the institutions, it is evident that they are largely orphanages, not child-placing 
agencies. It is difficult to determine the exact extent to> which this is true since the 
figures on the number of children placed in private homes include the older boys and 
girls for whom some sort of arrangement is made for entrance into a private home 
upon their final dismissal from the institutions. 

These institutions like the other public welfare institutions, are under the Com¬ 
missioners of Charities and Corrections, who has the power to visit and inspect and to 
require reports, 7 and the Board of Public Affairs, which according to law has control 
of the finances but which actually has superseded the Board of Managers in administra¬ 
tive control. 8 

The East Oklahoma State Home for White Children, designated in the reports of 
the institution, Whitaker State Orphan Home is located at Pryor in the northeastern 
part of the State. The institution is planned and operated on the cottage plan. There 
are ten two-story buildings with an average of 32 children to the cottage. One build¬ 
ing has recently been condemned as unsafe, making it necessary to crowd the children 
from that cottage into the other nine. Each cottage has its own dormitory, dining 
room, and kitchen. The institution has a school building which cost $75,000; and the 
school, including the high school, is accredited by the State Department of Education. 
There is a domestic art department and a trade school. The bakery also is used for 
vocational training. 


1 Stat. 3931, Secs. 5299, 5305. 

“Laws, 1919, Chap. 66. 

“Laws, 1929, 1931, 1933, Appropriations. 

4 Const. Art. VI. 

s Stat. 1931, Secs. 5200. 5220. 

*Stat. 1931, Sec. 5220. 

“Const. Art. VI, Sec. 28. 

*Stat. 1931, Secs. 3572, 5147, 5753. 




ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


79 


The Home has a farm of 600 acres, with a dairy barn; and the herd of Holstelns 
furnishes a daily average of 100 gallons of milk, which, the Superintendent says, is 
sufficient to furnish the children whole milk three times a day and a large part of 
the butter used. But if 329 children are given sufficient milk, it is evident that no 
great amount of butter is used. 

The West Oklahoma Home for Dependent children is organized on the congregate 
plan, with a dormitory for boys and one for girls and a central kitchen and dining¬ 
room. Hospital facilities are poor. An old three-story building, originally erected for 
a school building, houses; the administrative offices, quarter^ for the staff, and the school. 
The latter, through the high school, is accredited by the State Department of Educa¬ 
tion and is ranked second in the county where it is located. Recently a graduate of 
the State College of Agriculture has been added to teach agriculture and manage the 
farm. The latter comprises 240 acres of good wheat and alfalfa land, fairly good also 
for gardening. A dairy herd of 35 cows produces 100 gallons of milk a day. 

The superintendent has held his position eight years; and during that time 1,200 
children have been admitted. Five hundred have been placed in private homes; and 309 
were in the institution when it was visited. Attached to each institution is an "agent” 
whose duty is to supervise placement of children in private homes. Such placements, 
it appears, range all the way from adoption to old-fashioned indenture. 1 At Helena, 
the superintendent’s wife is the agent; but her other duties in the home are so nu¬ 
merous that evidently she has little time to find homes for children or to supervise 
those placed. She has had no training for the work except from her experience during 
the past eight years. At Pryor, the position has become a subject of political patron¬ 
age. The present incumbent is (withouiit training, or, apparently, other fitness for the 
position. 

State Subsidies to Private Institutions. The legislature of 1931 appropriated $75,000 
for the ensuing biennium to be expended by the Board of Public Affairs, with the ap¬ 
proval of the Governor, for the maintenance of orphans not in state institutions. The 
legislature of 1933 continued the appropriation ini the amount of $20,000 a year. The 
act provides that the Board may contract with “any reputable person or persons, who 
are residents and citizens of Oklahoma to furnish food, clothing, shelter, supervision or 
general upkeep for orphan homes and institutions.” 2 Under this act subsidies have 
been granted to about 20 private orphanages^ According to the procedure apparently 
used, the individual institution presents its needs to the Board of Public Affairs and 
a grant is made on a per capita basis, and divided among the various Institutions 
on a pei’centage basis. A bill before the recent legislature proposed an appropriation of 
$25,000 for the remainder of the fiscal year ending June 30, 1935, and $100,000 for each 
of the next two fiscal years. This bill authorized the Board to expend the funds ap¬ 
propriated : 

... by contracting with the Superintendent or other chief officer of orphan homes or in¬ 
stitutions within the state and otherwise qualified under the provisions of this Act, to furnish 
food, clothing, shelter and general upkeep for Oklahoma Orphan or destitute minor children. 
Such contracts shall be made upon a per capita basis not to exceed one hundred fifty ($150.) 
dollars per year. 

To be eligible to receive any contractual benefits intended by this Act, such orphan home 
or institution must have been regularly organized, operated and maintained, for at least two 
years prior to the passage of this Act, and must make satisfactory proof to the State Board 
of Public Affairs that it is adequately equipped and operated in a manner sufficient to pro¬ 
vide properly for such orphan or destitute minor children under its care and supervision. 

The State Board of Public Affairs does not contract for the care of particular 
children, does not prescribe standards of care, and has no facilities for visiting the 
institutions or supervising the expenditure of the funds appropriated. 

Another fund amounting for the present biennium to $72,500 a year is administered 
by the Soldiers’ Relief Commission “for aiding minor dependents of destitute, disabled, 
and deceased soldiers, sailors, nurses and marines, of the late World War, Philippine 


’Stat. 1931, Sec. 5201. 
Taws, 1933, Chap. 81. 



80 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


Insurrection and Boxer Rebellion.” Of this appropriation $35,000 a year is allotted to 
the American Legion Home School at Ponca City for the Support of 100 children. The 
remainder is used to support small groups in two foster homes and,to aid children in 
their own homes. 

State Institute for Deaf, Blind, and Orphans. The State Institute for Negro Deaf, 
Blind, and Orphans at Taft is even more of a catch-all than its name implies. On 
January 30, 1935, it housed 10 blind children, 14 deaf children, 344 dependent children, 
and 44 delinquent girls. The blind and deaf children at this Institution are being fear¬ 
fully neglected. One teacher is attempting to instruct both the blind and the deaf. 
One building is used for delinquent negro girls and is designated the Industrial School 
for Delinquent Negro Girls. The superintendent appears to lack technical fitness for 
his position; and there is, moreover, the worst possible type of divided authority. 
There is a white business manager, who is also Superintendent of the Hospital for the 
Negro Insane, and whose qualifications for either position seem to be mainly his po¬ 
litical connections. 

The superintendent, on the day the institution was visited, was quite proud of his 
store room; but the evening meal was meager and the children probably went to bed 
hungry. The store room contained a supply of new cups; but several children at one 
table were drinking water from one cup. Out of a dairy of 25 cows, 18 were being 
milked, producing 22 gallons a day. It Is apparent that these cows are unprofitable 
boarders. 

State Training School for Boys. The State Training School for Boys at Pauls 
Valley has been a political foot ball in greater degree than any other institution, 
perhaps, except the two state prisons; and it should be ranked at the foot of the list. 
The buildings with perhaps one single exception are disgracefully shoddy. The superin¬ 
tendent and his staff do not possess the requisite qualifications. Changing every four 
years, they have no chance nor incentive to maintain a continuous program. The 
children committed to the Institution are sacrificed to a vicious system of political 
patronage. 

At the time of the visit, the superintendent was an elderly man who had been in 
charge less than four years, apparently earnest, conscientious and slowly groping his 
way toward a program. The principal of the school was a man of about 35 years who 
had failed at the law. He gave no evidence of being an alert school man or a potential 
leader of boys. There are four teachers including the principal, three of whom teacli 
eight grades. The fourth has an ungraded group. A study made by T. I. Folsom in 
1930 showed that 24.0 per cen't of the boys were properly placed id school grade: 1.3 per 
cent retarded; 44.3 per cent accelerated; and another 29.8 per cent with half a year 
of correct placement. There is a mere pretense of vocational training. Since the 
institution was visited a new superintendent has taken charge. There nas been no 
opportunity to appraise this appointment. 

Industrial School for White Girls. On the other hand, the buildings at the In¬ 
dustrial School for 1 White Girls at Tecumseh are of, a superior type; there is cleanliness 
everywhere; there is a form of government by cottages, which is. in a measure, self- 
government; the atmosphere appears reasonably wholesome. The population on July 
1, 1934 was 258. The school work is accredited through the first eight grades; the 
method of accrediting appears different from that applied to the institutions for depend¬ 
ent children. In the latter, the Department of Education examines into the quality 
of work done; but, in the case of the Industrial School, the accrediting is for only 
one year and is based upon an examination prepared by the Department. If the 
required percentage of the students pass, the school is accredited for one year only. 
One suspects that the annual accrediting examination may cause too much time to be 
spent in coaching for the particular type of questions expected. The 9th and 30th 
grades are given largely to vocational education, featuring typewriting and stenography. 

The law is not specific as to the type of girl who may be sent to this institution. 
Apparently county judges sometimes send neglected as well as delinquent girls. 

Release on parole is earned by the girl. Entering as a probationer, sfie remains 
in this group at least three months. She may then be promoted to the “climbers” 
gjoup, and at the end of two months to the “honor” group. In another month, she 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


81 


may earn an “honor letter.” Then comes the “honor stripe” which she must wear 
three months before she is eligible for parole. The highest honor, carrying extra priv¬ 
ileges and responsibilities, is to become a “pilot.” Most of the girls earn their paroles. 
“Very few go out because of gaining their majority, not their honors.” 1 

There are other methods of discipline beside loss of honors. There is the “gloom 
ho-use,” described by the superintendent as a three-room building with a runway, modern 
conveniences, electric lights and water, 2 but in fact a jail with concrete walls and steel- 
barred cells. When girls show by their attitude that they are not worthy to associate 
with others they are confined in the jail for a period. For example, two girls were 
punished in this way for thinning each others eyebrows. For using vile language or 
fighting, a girl may be spanked, but only after the matron and the student council in 
the cottage report that other measures have failed. The spanking witnessed by four 
members of the staff, is done by a woman. “The humiliation awakens the girl, as two 
men members of the staff 'witness the spanking, and the girls do not like them tof know 
they have been naughty, as the mem umpire their games, take them on hikes, some¬ 
times nut and persimmon hunting, etc.” 3 

Under the preceding administration apparently other and even more objectionable 
methods of control were used involving the use of salt peter. 4 

Finally, when the girl has earned her parole an attempt is made to get some one 
to sign an agreement to take her and give her proper care and protection. Certain 
conditions art imposed upon herbut no provision is made for parole officers, either 
connected with the institution or in the community to which the girt is sent, and 
there is no real supervision of girls on parole. 

Since this, institution was visited, a new superintendent has been appointed, re¬ 
ported to be a younger, intelligent, cultured woman, but without training or experience 
for this position. 

State Training School for Negro Boys. The State Training School for Negro Boys 
is located at Boley. The present superintendent, in office only a short time, had been 
a practicing lawyer prior to his selection. He is a young man, interested in his new 
work, and apparently capable. In outlining a program for the School he sets forth 
his aims as follows: 

This program exists for the purpose of providing for the unfortunate, under privileged, 
delinquent, and incorrigible Negro boys committed to this institution, a course of training 
which will prepare them for rehabilitation in society. The ability to earn for one’s self in a 
respectable manner a comparatively competent livelihood is recognized as an effective deterrent 
to one’s entry or re-entry into the practice of obtaining one’s subsistence in ways prohibited 
by our various divisions of Government. By following the program outlined herein, the in¬ 
stitution aims to give its students such training as will make them proficient in doing those 
things which they will be called upon *to do as a means of earning for themselves livelihoods, 
and to permeate the institution with an atmosphere such that within each boy’s mind will be 
created the determination to live the life of a peaceful, law-abiding citizen .' 1 

There are four teachers in the academic department. The assistant superintendent 
and principal hast a P». S. degree from Wilberforce. The three, other teachers also have 
college degrees, one each from Wilberforce, Tuskeegee, and Wiley College, Texas. The 
institution needs a trained farm manager. 

School for the Blind and the Deaf. The School for the Blind at Muskogee and 
the School for Deaf at Sulphur are primarily under the control and direction of the 
State Department of Education. There has been no change in personnel with the 
change in political administration. In plant, equipment, personnel, and evidence of 
continuing program, these schools offer a marked contrast to the institutions for de¬ 
linquent children. There is criticism by some deaf persons in the state, who are 


’Superintendent’s Report, 11132. pp. 5-0. 

2 Superintendent’s Report. 1932. p. 8. 

3 The same, pp. 8. 9. 

4 The same. p. 9; 1933. p. 1. 
r, The same. 1932. p. 11. 

"State Training School for Negro Boys Program MS. 



82 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


advocates of the lip-reading method, of the methods of instruction used in the School 
for the Deaf; but this is a matter for decision by the Department of Education. 

In the case of both of these institutions, it may be questioned whether the state 
is insuring training to all blind and deaf children. The School for the Blind, for in¬ 
stance, is exactly filled to capacity—144. The finding of children thus handicapped 
is already provided for in the law relating to the enumeration of school children; 1 
and steps should be taken to assure special education at public expense to all those 
in need of it. 

Crippled Children’s Hospital. Oklahoma has taken special interest in the hospitali¬ 
zation of children and in 1927 created the “Crippled Children’s Fund.” Each county 
is required to levy a tax of not less than one-tenth of a mill which may be in excess 
of the maximum levy prescribed by the general law on taxation. 2 Any child of Indigent 
parents, afflicted with any deformity or malady that may be cured by surgical opera¬ 
tion or hospital treatment is eligible for treatment under this plan. 3 A hospital for 
crippled children has been erected, largely by private donations. It is a division of 
the University Hospital, connected with the School of Medicine. 

In a recent decision, the State Supreme Court held that the county levy to create 
the crippled children’s fund is valid; but that it is unconstitutional for the University 
Hospital to accept pay for its services from the counties. 4 This Legislation has recently 
been enacted to remedy this situation. 5 This decision has in no way curtailed the! 
services rendered by the Hospital to the children of the state. 

Work for crippled children in Oklahoma is done as in many other states with the 
cooperation of a private association, the Oklahoma Society for Crippled Children, or¬ 
ganized in 1925; and legal provision is made, as in other states, for the holding of 
clinics and the reporting of cases by the public health officials. LTider the law of 1927, 
more than 11,000 children have been committed; and there were reported to be early in 
1935 over 1,500 children on the waiting list at the Crippled Children’s Hospital. 

Hospitals for the Insane. Of the four state hospitals for the insane, the oldest is 
the Central Hospital at Norman. The present superintendent lias been in charge since 
its establishment about 30 years ago. He has built a creditable institution, comparable 
with the best hospitals in the South, and compared with other Oklahoma institutions, 
remarkably free from political interference. The Eastern Hospital at Vinlta, also a 
creditable institution, has been fortunate likewise in the matter of tenure for its staff, 
though not quite so advanced in regard to meritorious appointments as the Central 
Hospital. Its superintendent has worked during the last four years under constant 
threat of dismissal. But the hospital has suffered no actual disruption of its staff. 
Both institutions are overcrowded and understaffed. The Western Hospital at Supply 
has not had so fortunate a history, having been in recent years peculiarly a victim 
of the spoils system. Only one member of the present professional staff and not more 
than ten persons, counting e.very one from superintendent to janitor, were employed in 
the institution four years ago. The present superintendent, a capable man, has had 
experience as a member of the Central Hospital staff. 

The Hospital for the Negro Insane at Taft has been opened within the last year. 
The building, outwardly a rather attractive building of brick, is within a highly in¬ 
flammable structure. In several of the so-called strong rooms; the patient has climed 
up the window, which is of a type easily converted into a ladder, torn the ceiling off 
With his bare hands, pulled himself into the attic, and reentered one of the main 
wards by breaking another hole through the ceiling. There is trouble also with the 
water supply. The shortage is so serious that some days there is no water. The superin¬ 
tendent says he is about to solve this problem by digging additional wells. Another 
serious difficulty is presented by dual control. The chief medical officer, a well trained 
negro physician, appears to be capable; but he is without experience in running a 


3 Stat. 1931, Sec. 6950. 

’Stat. 1931. Sec. 1751. ' 

s Stat. 1931, Sec. 7229. 

’Pacific Reporter, 34, 2d Series, pp. 274-6. 
r S. B. 15. approved May 10, 1935. 



ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


83 


hospital for the insane. Over him is a white superintendent who is not a physician, 
without experience and apparently without any technical qualifications. The chief of 
the medical staff lacks control of his own subordinates and cannot direct the diet of 
his patients. Control and direction of such matters are necessary for successful opera¬ 
tion of a hospital. 

Establishment of this institution was probably a mistake. It will hardly be pos¬ 
sible to provide competent services in a separate institution for the small percentage 
of negroes in the state's population. It might have been better to improve and enlarge 
the negro section at the Central Hospital, where additional professional services could 
have been provided without additional administrative cost. In this way these patients 
would have received the special services of a first class hospital, which they do not 
have in the separate institution. 

State Institution for the Feeble-Minded. The State Institution for the Feeble- 
Minded is another of the special victims of political patronage. Under superintendents 
without particular qualifications, the institution has become a mere custodial agency 
accumulating an ever increasing number of wards to be supported at public expense, 
has been no intelligent effort to furnish training for the trainable. On the other hand, 
the institution was clean; and, while there may have been little knowledge of the dietary 
needs of the inmates, they appeared to have been abundantly fed. A new superintendent, 
who was for several years head of the Western Hospital for the Insane, has Just been 
appointed. He has definite plans for making the institution a real training school for 
the care and treatment of mental defectives. 

State Penitentiary. On January 15, 1935, the State Penitentiary at McAlester, with 
a capacity, not counting the women’s ward, of 1,050, one man to a cell had a total 
population, omitting the women, of 3,310. Of these 2,201, were actually housed within 
the prison. Two men to a cell was the rule. The overflow, about 100, slept on cots 
in the corridors. The remainder, 1,206, a few more than one-third of the total popu¬ 
lation, were “trusties.” Of these, 430 were housed in temporary buildings at Stringtown, 
where a new prison was being built; 333 were in two highway camps; more than 400 
w r ere quartered in the “trusty building” just outside the walls; a few others were 
scattered here and there, two at the Pittsburg County Home for the aged. 

In this prison where there is an atmosphere of extreme suspicion and lack of 
trust of anyone connected with the institution, whether prisoner or employee, the pro¬ 
motion of so large a number to the position of “trusty” necessarily brought its problem. 
From Jujy 1, 1931 to June 30, 1934, 4,030 prisoners were made trusties. There were 
373 escapes from this group. Of these, 314 were recaptured. From the other two- 
thirds of the prisoners there were for the same period 29 escapes, of whom 23 were 
returned. 

This is the only institution in the country in which all those entering the prison, even 
if only to go into the administration offices, are subject to search .... This is also the only 
institution in which a constant patrol of the outer walls is kept up by men on horseback .... 
The prison seems to be suffering from an escape complex, which is bad for the morale of both 
officers and inmates. 1 

Visitors are still searched. The prison officials state that every one, including 
all officials of the prison from the Warden down, is subjected to the same treatment 
Aside from these evidences of distrust there were no indications of extreme repression. 

It is impossible to determine from a short visit many questions concerning dis¬ 
cipline and morale. Men whose conduct is bad, it was reported, are reduced to third 
class. They may be sent to “weed row%” which means they are confined to the cells 
in a section set apart for this purpose; or they may be sent to the “hole,” a group 
of dark, very poorly ventilated, unfurnished cells in the basement. The prisoner w T ho 
escapes upon return is put in stripes. He may by good conduct be restored to first 
class and his stripes removed. There is no second class. On January 16, 1935, there 
were in the prison 52 third class prisoners; but no one was in the “hole.” 

Medical service for the prisoners is inadequate. A physician is employed for part 
time; and, two surgeons, one with an excellent rating, give their serv'ces for operations. 

’Handbook of American Prisons and Reformatories, 1929, p. 795. 



84 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


The hospital is a mere makeshift in an attic-like room, with poor ventilation, and 
no facilities for separating different classes of cases. In an effort to overcome these 
conditions some tubercular prisoners had been placed in ‘a tent inside the prison wall. 
The day before the prison was visited, four of these had tunneled their way under 
the wall to freedom. There are no psychiatric or psychological services. 

An inmate principal and a group of prisoner-teachers, under the nominal direc¬ 
tion of the chaplain, without sufficient space and with the most meager facilities, are 
making a rather creditable attempt to operate a school. There are 17 full-time and 
seven part-time teachers. Two are college trained. The others range from eighth grade 
up. The space available limits instruction to a small group. 

This is a somewhat highly industrialized prison. The industries are under a 
superintendent who is appointed by the State Board of Public Affairs and over whom 
the warden has no control. This division of authority appears detrimental. One of 
the largest industries is the making of pants on contract. The prison is facing the 
necessity of changing to a state's use program. Because of the large number of pris^- 
oners and of the curtailment of the market for prison products, the idle group is 
large. To the Governor’s budget committee the warden reported 869; but the budget 
committee reported that on the day of its visit there were 1,200 idle. 1 

Since this institution was visited a new warden has been appointed. He has 
previously served as warden of this prison. He is reported to be a strict disciplinarian 
of the military type. As deputy warden a young man, formerly an athletic coach at 
the State A. and M. College has been selected. 

The women’s building located some distance from the main prison is under the 
immediate supervision of a matron and women assistants. It housed on January 15, 
1935, 111 prisoners, of every class from women detained for treatment for venereal 
diseases to the most serious offenders. “This building is overcrowded, there being 112 
women inmates living in cells and rooms having a capacity of 70. There is also an 
extremely dangerous existing condition due to the venereal diseased women, about 2C 
in number, being housed! in the same cells as other inmates.” 3 In most rooms two 
women were occupying a small single bed. The place, however, was as clean and 
attractive as an old type of prison, crowded beyond capacity, can be made. The 
proximity to the men’s prison makes it necessary to keep the women more closely con¬ 
fined than otherwise would be desirable for many of them. 

The legislature of 1933 directed the State Board of Public Affairs to build a new 
prison to be a department or “substation” of the Penitentiary, the initial structure to 
be located in Atoka County near Stringtown. 3 The] act provides that the new prison 
shall be used for prisoners afflicted with tuberculosis and other infectious diseases “and 
such other prisoners as the said Board shall deem it expedient to have cared for at 
the said substation. 4 For the construction of this prison the legislature appropriated 
$150,000 from the revolving fund of the Penitentiary and $150,000 from the revolving 
fund of the twine plant of the Penitentiary. 3 

Under this act the State Board of Public Affairs planned a prison to consist of 
four cell buildings, four stories high, with a capacity of 900 men each, and a hospital 
of 100 beds, with the necessary office and other accessory buildings. The hospital, a 
two story brick building, is 75 per cent completed. The Board has spent $410,923.13. 
This includes about $200,000 worth of material on hand. The budget committee es¬ 
timated that the completion of the hospital and one cell house with the necessary 
accessory buildings will cost $1,022,500 and that the completion of the prison as 
planned by the Board of Public Affairs will cost about $2,000,000.* * The plan is for' 
a prison of maximum security surrounded by a stone wall 18 feet high. 

State Reformatory. The Oklahoma State Reformatory was established by an act 


Repoi t of Budget Committee, Jan. 1935. MS., p. 39. This is a committee appointed by 
the Governor to report on the needs of the institutions. 

’Report of Budget Committee Survey, MS., p. 41. 

"Laws, 1933, Chap. 98, Sec. 1. 

Taws, 1933, Chap. 98, Sec. 2. 

Taws. 1933. Chap. 98, Sec. 6. 

*Report of Budget Committee Survey, MS., pp. 42-4. 



ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


85 


approved March 11, 1909. providing that all persons between the ages of 16 and 25 
years whose sentence to imprisonment shall not exceed live years, shall be confined in 
either the reformatory or the state penitentiary at the discretion ot' the court imposing 
the sentence. 1 Ini 1918, the legislature permitted commitment to the reformatory, in the 
discretion of the judge passing sentence, felons, except the following classes; confirmed 
criminal recidivists: those sentenced for life or 99 years; those convicted of manslaughter 
of the first degree; those convicted of assault with intent to kill, committed in a' cruel or 
inhumane manner; and those convicted of rape of the first degree. 2 The requirements 
of this second act are not observed. There are many recidivists in the reformatory 
as shown by finger-print records; but they are not transferred to the Penitentiary. 
Granite has become merely a second state prison, not a reformatory. 

“The management of this institution is somewhat handicapped by the class of 
personnel recommended by various influences.” Thus, on the night of the visit of the 
Budget Committee engineer, something went wrong with an electric transformer, and 
an inmate had to be summoned to make the necessary repairs. 3 The entire staff under 
the warden was of low type. Among those who appeared especially Incompetent, were 
the principal of the school, the chaplain, the physician, and the steward. The warden 
stated that she did not have a single subordinate who was 1 competent to till the position 
which he held. 

Since this institution was visited and following damaging disclosures concerning 
the punishment of prisoners in the institution and a later prison break in which a 
guard was killed, eight prisoners wounded, and 17 escaped, the warden was replaced 
by a former sheriff. 

There is little in the way of industrial employment or vocational training in this 
institution. There is a mountain of stone which can furnish building stone and crushed 
stone for road building; but little use is being made of it. A tannery is not operated. 
In a shop, farm machinery, etc., is repaired and a few prisoners are making shoes 
while another group makes clothes for the inmates. Farming is seriously hampered 
by lack of rain. Under the direction of the State Agricultural College, some terracing 
is being done which it is hoped will so conserve moisture on a part of the land as to 
make it productive. 

The prisons of Oklahoma are characterized by serious crowding, idleness, lack of 
medical and educational facilities, political control of personnel, and a general feeling 
of unrest and insecurity on the part of officials, all of which make efficient and eco¬ 
nomical administration almost impossible. 

Institution for Veterans. The state maintains at Ardmore a Home for Confed¬ 
erate Veterans and their wives and widows, having a total membership on October 81, 
1933, of 95 persons, 45 men and 50 women. 

The state formerly operated a Union Soldiers’ Home near Oklahoma City, which 
was closed because the appropriation for its maintenance was vetoed by Governor 
Murray. It is reported that only eight of the inmates were bona fide soldiers of the 
Civil War. 

Veterans’ Tuberculosis Sanitarium. The hospital for tubercular soldiers at Sul¬ 
phur, open to veterans of all wars of the United States, was established through the 
interest of the American Legion primarily for veterans of the World War. Crowded 
beyond capacity, it cares for a few more than 100 patients. 

Tuberculosis Sanatoria* The state maintains two other sanatoria for the treatment 1 
of tuberculosis, one at Talihina in the eastern part of the state and one at Clinton in 
the western part. The Eastern Sanitarium has a population of more than 250 pa¬ 
tients, more than, 50 of whom are children; the Western has a patient population of 
more than 200. Negro patients are treated in a ward of this institution. These hos¬ 
pitals are under the supervision of the State Department of Health. 

The University Hospital is operated in connection with the University School of 
Medicine. It furnishes teaching facilities for the School of Medicine and incidentally. 


J Stat. 1931, Sec. 5307. 

=Stat. 1931. Sec. 5296.. 

■‘Report of Budget Committee Survey. MS., p 8S. 



80 ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 

with the Crippled Children’s Hospital annex, affords hospital treatment for indigent 
patients. There are few pay patients. For the year 1 ending June 30, 1934, the hospital 
admitted a total of 6,030 patients. 

LOCAL PUBLIC WELFARE ACTIVITIES 

Relief. “The several counties of the state shall provide as may be prescribed by 
law for those inhabitants who by reason of age, infirmity, or misfortune, may have 
claims upon the sympathy and aid of the county.” 1 

The county commissioners are overseers of the poor. 2 They may establish a county 
home, for which including land they may expend a maximum sum of $5,000, $10,000, 
$15,000, or $40,000, depending on the taxable valuation of the county. 3 Instead of 
building a home the county may rent suitable quarters. 4 To the poor farm, designated 
“The Oklahoma Home” 5 * the commissioners may admit under such rules and regula¬ 
tions as they may prescribe, poor and indigent persons lawfully settled in the county. 8 
In counties not having a home the commissioners may provide for the keeping of the 
poor by contract after advertising for sealed bids;. 7 Instead of support in an almshouse, 
the commissioners may allow to poor persons or to parents of defective children an 
amount not greater than the cost of their maintenance "in the ordinary mode.” 8 Thirty- 
six counties, according to the Commissioner of Charities and Corrections, have county 
homes or' poor farms. At least one of the 36, Cleveland, does not operate the poor farm 
as such. 

In a county having a population of more than 115,000, that is, in Oklahoma and 
Tulsa coffrities, the commissioners may appoint one or more assistants for care of 
the poor at a salary not to exceed $200 a month. 9 Under this provision, Oklahoma 
Comity has created a department of social service. The staff consists of a director 
and live assistants, none of whom is a trained worker. As a rule, the force is changed 
with each new board of commissioners. 

The Oklahoma County social service department has nominal supervision of the 
coupty home and of the boys’ home and the girls’ home. The county court admin¬ 
isters the widows’ pension fund. In this county, the judge lias a full time probation 
officer; and the social service department cooperates with the probation officer in in¬ 
vestigating widows’ pension cases. The Taylor Home for Dependent Boys and the 
Home for Dependent Girls are maintained by the county for the care of dependent 
children under 16 years of age. 

The Oklahoma County Social Service Department for the year ending June 30, 1934, 
administered the expenditure of a budget- of $398,882.75. 10 

Tulsa County has created a department which it calls “Tulsa County Welfare.” 
The staff consists of a supervisor, three case workers, a health department investi¬ 
gator, a stenographer, and an office clerk. There is no evidence that the workers are 
appointed exclusively on the basis of merit. Tulsa County during the last fiscal year 
spent welfare funds to the amount of $198,813.91. 

No other county has any organized welfare work. No other county, of course, 
approaches the wealth of Oklahoma and Tulsa. Muskogee, for example, has one- 
fourth the taxable wealth of Oklahoma or Tulsa ; but Muskogee’s expenditure of $22,- 
442, are less than one-tenth of Tulsa s and less than one-twentieth of Oklahoma’s. Le 
Flore County, with an assessed valuation of $15,000,000, spent only $151. 0 n relief; 

3 Const. Art. XVII. Sec. 3. 

2 St.at. 1931. Sec. 7543. 

3 Stat. 1931. Sec. 7544. 

4 Stat. 1931. Sec. 7556. 

6 Stat. 1931. Sec. 7583. 

8 Stat. 1931. Sec. 7553. 

7 Stat. 1931, Sec. 7557. 

8 Stat. 1931, Sec. 7567. 

9 Stat. 1931. Sec. 7589. 

10 It is not clear whether this amount includes the cost of the negro poor for whose care 
the county contracts with a negro church organization that formerly operated a private home 
for the aged and orphans. The county pays $14.00 per person per month. About 20 are cared 
for. This item apparently would add about $3,000 to the annual expenditures. 



ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


87 


and Comanche, with assessments totaling $13,500,000, spent $8,250. Expenditures in 
other counties ranged from $70, in Marshall to $46,729 in Kay. Twelve counties spent 
less than $1,000 each; and 24 counties, more than $10,000 each. Five counties—Kay, 
Oklahoma, Osage, Tulsa, and Washington—spent more than $25,000 each. The total 
spent by all counties in the fiscal year 1933-4, for welfare services, not including cor¬ 
rections or contributions to emergency relief, was $1,193,989. 

The law provides that “it shall be the duty of the overseers of the poor at least 
once a year to appoint three well-informed, substantial citizens, not of kin to nor 
interested in, the superintendent, who shall serve without compensation, to visit said 
asylum (County Home) and report its condition to said overseerf’ 1 The extent to 
which this requirement is observed has not been determined by this survey. 

Child Welfare. The county is the unit in Oklahoma for the administration of 
various child welfare laws. The total funds available for widows’ pensions are ap¬ 
propriated by the county. The mother to be eligible must have a child or children 
under 14 years old; her husband must be dead, or insane, or confined m one of the 
state prisons. The mother may be allowed $10 a month for the first child and $5 
for each additional child; but the total amount that may be appropriated for this 
purpose by any county is $8,000 a year. The fund is administered by the county 
court. 2 3 

Tabulations by the Oklahoma Chamber of Commerce show 46 of the 77 counties 
of the state administering widows’ pensions in the fiscal year 1933-4. The total amounts 
spent for this purpose ranged from $100 in Payne County to $10,501 in Lincoln. Only 
three counties reached the limit set by law—$8,000. Lincoln exceeded the limit by 
$2,501. The grants per month in a few counties studied by the Citizens’ Committee 
varied from $3.00 to $8.00 with few mothers receiving $8. The total spent for this 
purpose in the fiscal year 1933-4 was $103,461. 

In any county having a population of more than 75,000 the county commissioners 
may establish a county home for dependent children. Such a home when established 
is under the 1 control of a board composed of the county judge, the chairman of the 
board of county commissioners!, and the county superintendent of public instruction.' 

The Crippled Children’® Fund has already been mentioned. 

Juvenile Court. The statutes provide that the county court shall be the juvenile 
court in every county. 4 Municipal criminal courts have coordinate jurisdiction in all 
juvenile delinquency cases. 5 * The county court as such, has original jurisdiction in all 
bastardyf and adoption proceedings. 7 As a juvenile court it has exclusive original 
jurisdiction in all cases of dependent and neglected children and coordinately with 
municipal criminal courts in cases of delinquent children. 8 The county court also passes 
upon the eligibility of children for treatment under the crippled children’s act of 
1927. 9 

The law provides for the appointment of probation officers in Oklahoma, Tulsa, 
and Payne counties. The probation officer for each county is appointed by the juvenile 
court judge; and assistant probation officers may also be appointed by him with the 
approval of the county commissioners. 10 The law prescribes no qualifications for pro¬ 
bation officers. There is a provision' for the possible future appointment of combined 
truancy and probation officers by county boards of public welfare. 11 There are, ap¬ 
parently, seven probation officers in the state. 

The latest figures available on the juvenile courts are for the year 1930. These 

1 Stat. 1931, Sec. 7565. 

2 Stat. 1931. Sec. 7600. 

3 Stat. 1931, Sec. 7533-5. 

4 Stat. 1931, Sec. 1730. 

B Stat. 1931, Sec. 6514. 

«Stat. 1931, Secs. 1717-8. 3951. 

7 Stat. 1931, Secs. 1701-16. 

8 Stat. 1931, Secs. 1729, 6514. 

9 Stat. 1931, Secs. 1748 ff. 

10 Stat. 1931, Sec. 7845. 

17 Stat. 1931, Sec. 7003. 



88 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


figures, based, on reports from 55 counties, show 14 places for tlie detention of juveniles, 
3 counties where children under 12 years were locked up, and 5 where children were 
confined in jail with adults. In that year, 552 children were placed in the custody of 
their parents and 724 in the custody of institutions. 

The average court judge has little acquaintance with approved juvenile court 
method. He has, moreover, no facilities for obtaining the social investigation on which 
to base an enlightened decision. After he has heard the case, he has no choice hut 
to send the child to an institution or release him without supervision by any public 
agency. Under these conditions it is not surprising that a large percentage of the 
children brought before the courts are committed to institutions. 

Truant Officers. The enforcement of the compulsory school attendance law in rural 
districts is also placed upon a county unit basis. The law provides that a truant 
officer shall be appointed by the county superintendent of schools, or if one should be 
established, by the county board of public welfare. 1 

County Jail. The statutes provide that there shall he established and kept in 
every county a prison for the safe keeping of prisoners lawfully committed, 2 persons 
charged with offenses and awaiting trial, persons detained as witnesses, and persons 
sentenced to a state prison and awaiting removal. 2 The sheriff has charge of the jail 
and custody of prisoners. 4 The judges of the district courts are required to prescribe 
rules for the administration of the county jails, with regard to sanitation, the classi¬ 
fication. care, and discipline of prisoners, etc. 5 * These rules are supposed to be filed 
with the Secretary of State, but in March, 1935, rules for only one county jail were 
on file. 

The law requires that the following classes of prisoners be separated in the jail: 
prisoners (who are not criminals; felons and other criminals; the sexes; 0 prisoners with 
contagious diseases. 7 8 It is further provided that juvenile prisoners shall be kept, if 
the jail will admit it, separate from experienced and hardened prisoners. 3 It thus 
appears that six separate compartments are mandatory and that eight are considered 
desirable. Cruelty to prisoners is forbidden, but a disorderly prisoner may be chained 
or put in solitary confinement and fed on bread and water. 9 10 

The statutes make it the duty of the State Commissioner of Charities and Cor¬ 
rections to visit the jail at least once a year and make recommendations concerning 
it in writing, to the county commissioners.' 0 The State Commissioner may order the 
jail put in sanitary condition at any time. 11 The sheriff must visit and examine the 
jail in person at least once a month and once within each term of the district court. 12 
It is the duty of the grand jury to inspect the jail. 13 The county commissioners also 
must visit) and inspect the jail at least once a year. 14 

That the jails constitute a highly important part of Oklahoma’s penal system is 
evidenced by the fact that in the year ending October 31. 1930, persons sentenced to 
jail in 50 counties numbered no less than 17.707. 

City and Town Welfare Activities. Cities and towns in Oklahoma apparently en¬ 
gaged in few welfare activities. Oklahoma City has a department of public, welfare 
through which it spends a total of $5,000 a year. It employs a director and some¬ 
times a helper. The department, says the director, supplements the work of other 


1 Stat. 1931. Sec. 7003. 

=Stat. 1931. Secs. 3280. 7G68. 

3 Stat. 1931. Sec. 3281. 

4 Stat. 1931, Sec. 7632. 

6 Stat. 1931, Sec. 3282. 

*Stat. 1931. Sec. 3295. 

7 Stat. 1931. Sec. 3314. 

8 Stat. 1931. Sec. 3309. 

“Stat. 1931. Secs. 3300. 3307. 

10 Stat. 1931. Sec. 3602. 

31 Stat. 1931. Sec. 3313. 

“Stat. 1931. Sec. 3292. 

13 Stat. 1931, Sec. 3296. 

34 Stat. 1931, Sec. 3301. 



ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


89 


agencies and serves as a place of appeal for clients who cannot get adequate treat¬ 
ment elsewhere. The city of Tulsa maintains a juvenile court which is doing much 
the best juvenile court work in the state. It has jurisdiction only in cases of de¬ 
linquency. In connection with the juvenile court the city operates a detention home 
for boys. 

CONCLUSIONS AND RECOMMENDATIONS 

The public welfare services of the State of Oklahoma and its subdivisions, omit¬ 
ting both regular county poor relief and emergency relief, involve every year services 
or treatment for nearly 100,000 persons. Of these 50,000 are children. This program 
since 1930 has cost the taxpayers of the state from ,$6,000,000 to $8,000,000 a year. 
Through the Emergency Relief Administration, $22,000,000 a year is being spent. The 
total annual budget for public welfare services amounts to about $30,000,000. 

The state has thus far established no properly organized or adequately equipped 
agency to*assure the wise, economical and effective expenditure of these funds. The 
State Board of Public Affairs seems to have interpreted its powers as extending only 
to the financial and business affairs of the institutions and the quadrennial appoint¬ 
ment of personnel largely on a political patronage basis. The Constitution and the 
statutes, furthermore, specifically place the supervision of these same institutions un¬ 
der the Commissioner of Charities and Corrections, who has no administrative power 
and can only recommend. 

Scattering of functions among many uncorrelated agencies may be well illustrated 
in the field of child welfare. Adoptions, the care of illegitimate children, and the de¬ 
termining of the eligibility of children for hospital treatment are functions of the 
county court as such, which also administers widows’ pensions. All other cases in¬ 
volving dependent children and neglected and delinquent children are within the juris¬ 
diction of the county court sitting as a juvenile court. The child is committed to an 
institution which is under the general control of a Board, of Public Affairs that derives 
its authority from the fact that it lias been designated by the Governor to act in lieu 
of a Board of Managers of Children’s Institutions provided for by statute. The in¬ 
stitution is supervised by the Commissioner of Charities and Corrections. When the 
child is released from the institution, although he remains a ward of the state, no 
agency is charged with his further supervision and no facilities are provided for such 
supervision. 

In the case of children outside of institutions inadequacy and disorganization are 
equally apparent. With respect to the adoption of children and the administration 
of mothers’ aid, county agencies have no facilities for social investigation or far- 
sighted planning. The responsibility for the administration of special funds for de¬ 
pendent children has been so placed as to preclude the possibility of a well-planned 
and coordinated state child welfare program. One such fund, amounting during the 
last two bienniums to $75,000 and $40,000, respectively, is administered by the Board 
of Public Affairs: and another of $72,500 a year, by the Soldiers’ Relief Commission. 
Neither agency has personnel training for such work. 

In placing its welfare institutions under a single board, Oklahoma took a step 
toward unified welfare administration which has not yet been taken by a number of 
other states. For the most part, however, it has been the legislative habit in Okla¬ 
homa to create a new agency whenever a new need has arisen. For this practice, 
there may be justification in some cases. But when the social and administrative 
meaning of a function is fully understood, when its relationship to other functions has 
become clear, and when the need of coordination has become apparent, the continu¬ 
ance of a separate agency for the administration of a single function is symptomatic 
of weak social leadership and popular apathy. Too pronounced a lag between social 
facts and administrative organization spells waste of public funds and of human re¬ 
sources. For illustrations of the multiplication and persistence of small and in¬ 
effective agencies one may point to the Board of Commissioners for the Blind, the 
Soldiers’ Relief Commission, the Commissioner of Pensions, the Deportation Officer, the 
Board of Pardons, the Pardon Attorney, and the recently established State Crippled 
Children’s Commission. 


90 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


Finally there is the State Emergency Relief Administrator, with a large shift', 
with agents in every county, and with an enormous fund. This organization, if con¬ 
tinued, would parallel and in large part duplicate, the work of other agencies ad¬ 
ministering recognized public welfare services. 

Another outstanding characteristic of welfare administration in Oklahoma is the 
absence of any program of prevention. The juvenile court is an essential part of a 
coordinated preventive program; hut the juvenile court in Oklahoma, with perhaps 
only one exception, looks mainly to the institutions. The Commission for the Blind 
was evidently intended to be a preventive agency; but it is without funds that would 
enable it to function with any appreciable degree of effectiveness. The resulting ex¬ 
treme emphasis upon institutional care is at once costly and comparatively ineffective. 

The work of the institutions is hampered by the existing type of control. In 
practically none of the institutions is the merit system established. Of those discussed 
in this chapter, the Schools for the Blind and for the Deaf appear free from political 
patronage. The Central and Eastern hospitals for the insane, also, are comparatively 
free from political interference; but even in these institutions there is an occasional 
political pensioner placed in a position for which he is in no way qualified, or for 
,whom a useless position has been created at the expense of other services badly needed. 
Occasionally, an efficient employee in an important position is dismissed by the Board 
of Public Affairs to make a place for a political appointee. In the other institutions, 
it appears to be considered legitimate for every new Board of Public Affairs to change 
any member of the staff, or the whole stall', to make places for political and personal 
favorites, and for a state senator to demand the privilege of naming a successor to 
anyone from superintendent to janitor. 

Preliminary to any effective reorganization of public welfare activities, therefore, 
two conclusions of major importance must be accepted. First, the various institutions, 
with the exceptions pointed out later and the scattered activities, whether state or 
county, which have been discussed, should be treated as inter-related and inter-depend¬ 
ent, constituting a vast problem of social maladjustment. It is the conclusion of the 
survey that they should be so organized as to make possible a coordinated and ef¬ 
fective state wide program, preventive as well as custodial and remedial. The second 
conclusion is that the agency or agencies carrying out the program must be established on 
a basis of non-partisan, effective service. There must be a clear understanding, sup¬ 
ported by enlightened public opinion, that destitution, unemployment, the welfare of 
children, mental illness, and delinquency are not conditions that,can be prevented or 
effectively treated on a: partisan or factional basis. In order to meet these two funda¬ 
mental needs, it is proposed that Oklahoma establish a State Department of Public 
Welfare, so constituted as to make possible a comprehensive, enlightened and con¬ 
tinuous program and give reasonable assurance of a trained personnel selected on 
the basis of qualification for the particular work to be done. 

In order that this reorganization may be accomplished, certain amendments of 
the Constitution are desirable. 

Article VI, Section 1, of the Constitution should he amended by striking out the words 
“Commissioner of Charities and Corrections 

Article VI should be amended by striking out Sections 27 to 30 inclusive. 

This action would repeal the provision for the election of a Commissioner of Char¬ 
ities and Corrections by popular vote and the constitutional enumeration of powers 
and duties of such an official, and would leave the matter of public welfare organiza¬ 
tion to the discretion of the legislature. 

Article VI, Section 10 should be amended to permit the legislature to provide by statute 
for a system of probation and 1 parole. 

Having thus removed constitutional obstacles, it is recommended that substantially 
the following reorganization should be brought about. 

A Department of Public Welfare should be created for the management and control of 
all state zvelfare institutions and agencies and the performance of all state public zvelfare 
functions. 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


91 


The Department should be headed by a Board of Public Welfare of five members ap~ 
pointed by the Governor, the initial appointments being one for two years, tzvo for four years, 
and two for six years. 

Subsequent appointments should be for a term of six years. Members of the Boyd 
should be selected, from the state at large on the basis of their fitness for the duties to be 
performed. Not more than three should be of the same political party. The members should 
serve without pay except for necessary traveling expenses. The Board should meet quarterly 
or oftener at the call of the chairman. 

The Board of Public Welfare should appoint a Commissioner of Public Welfare, who 
should be a person qualified by training and experience in welfare administration, who should 
serve at the pleasure of the Board. The Commissioner should be the Executive Officer of 
the Department, in direct charge of all executive and administrative work, and with authority 
to appoint and remove the subordinate personnel. 

The Commissioner of Public Welfare, with the approval of the Board, should be! 
empowered to create such bureaus or divisions as may be necessary for effective and 
economical administration. At least six bureaus seem to be essential. 

(1) A Bureau of Administration, in charge of strictly administrative, business 
and fiscal matters: Disbursements, accounts, purchases, construction and repair, and 
personnel. 

(2) A Bureau of Assistance, administering all state relief funds, including 
emergency relief, old age pensions, state pensions for veterans, all other special relief 
funds for the benefit of adults, and any federal relief funds that may be administered 
through a state agency; cooperating with public health and educational agencies in 
work for the blind, deaf, and other physically handicapped groups; supervising county 
and other local relief institutions and agencies; licensing private organizations solicit¬ 
ing funds for charitable purposes; and assisting in the organization of county or dis¬ 
trict public welfare agencies. 

(3) A Bureau of Child Welfare, directing all state institutions for dependent, 
neglected, delinquent, and physical handicapped children, except medical and surgical 
hospitals and the schools for the blind and the deaf; licensing and supervising all 
private child-caring and child-placing institutions and agencies, boarding homes for 
children,, and maternity homes; promoting boarding home and foster home care for 
children; administering state funds for mothers’ aid, any other state funds for the 
aid of dependent children not in institutions, and any fedei*al funds which may be 
allocated to be spent through a state agency for the aid of dependent children ; super¬ 
vising. in cooperation with other interested agencies, the expenditure of the crippled 
children’s fund and other similar funds for handicapped children; and in general, 
leading and cooperating in the development of a well-rounded child welfare program 
for the state. 

(4) A Bureau of Mental Hygiene, supervising the hospitals for the insane and 
epileptic and institutions for the feeble-minded; and. in cooperation with public health 
and educational agencies, with the state hospitals for the insane, and with the Uni¬ 
versity, developing a mental hygiene program, to include the extension of the clinical 
work already being done by the Central Hospital for the Insane, and active promotion 
of educational and other measures for the control and prevention of mental illnesses and 
mental deficiency. 

(5) A Bureau of Correction, supervising state penal and correctional institutions; 
regulating and inspecting local jails and lock-ups, so long as these are locally con¬ 
trolled ; having charge of the parole of all prisoners from state institutions, or at least 
the making of social investigations and reporting in all cases to the authority grant¬ 
ing paroles; and, directly and in co-operation with local public welfare agencies, super : 
vising all paroles from correctional institutions and all persons placed on probation 
by the courts. 

(6) A Bureau of Research and Statistics, serving as the fact-finding, evaluating, 
and planning branch of the Department and especially charged with the assembling, 
classification, and interpretation of all information that may be useful in the develop¬ 
ment and carrying out of the state welfare program. 


92 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


The State Department of Public Welfare should be given the function of certifying the 
qualifications and training of local social workers. 

This function might be assigned to the Bureau of Assistance or, perhaps, to the 
Bureau of Administration; or it might be deemed advisable to have it exercised by 
a committee, representing the bureaus of Assistance, Child Welfare. Mental Hygiene, 
and Correction, and headed by the Commissioner or Assistant-Commissioner of Public 

Welfare, 

All the Powers and Duties of the Board of Public Affairs pertaining to welfare institu¬ 
tions and activities should be transferred to the Department of Public W el fare. 

The State Emergency Relief Administration should be consolidated with the Depart¬ 
ment of Public Welfare. 

The duties of the Commissioner of Charities and Corrections should be transferred to 
the Department of Public Welfare at the expiration of the term for which the present Com¬ 
missioner has been elected. 

The law providing for a Board of Managers of Childrens Institutions should be re¬ 
pealed and the powers and duties enumerated therein should be transferred to the Depart¬ 
ment of Public Welfare. 

The Commission for the blind should be abolished and its duties transferred to the Depart¬ 
ment of Public Welfare. 

The Soldiers’ Relief Commission should be abolished and its responsibilities transferred 
to the Department of Public Welfare. The administration of the fund for dependent chil¬ 
dren of ex-soldiers should also be transferred to the Department and consolidated with the 
fund now administered by the Board of Public Affairs into a fund for the support of de¬ 
pendent children without regard to any other classification of their parents. 

The office of Commissioner of Pensions should be abolished and its duties transferred 
to the Department of Public Welfare. 

If sentiment demands it, so long as there is a Confederate veteran left who is in 
any way capable of acting in the capacity, the position of Commissioner might be 
retained but attached to the Department of Public Welfare whose staff could do the 
work required. 

The position of Deportation Officer should be eliminated and its duties transferred to the 
Department of Public Welfare. 

The matter of determining legal settlement is everywhere recognized as a func¬ 
tion of a department of public welfare. 

The position of “State Agent” as note constituted, at each of the ttvo state institu¬ 
tions for dependent white children should be discontinued. 

These institutions should become practically adjuncts to the Child Welfare Bureau 
of the Department and procedure for the placing and supervision of children should 
be worked out under the supervision of that Bureau. 

The position at the Western Hospital for the Insane at Supply, concerned, with exam¬ 
ining the ability of patients to pay for their treatment, should be dropped and this work done 
by the Department of Public Welfare. 

The Commissioner of Charities and Corrections reports that this official collected 
$11,000 last year and received $3,000 as remuneration for his services. 

The Bureau of Pardons and Paroles should be abolished and the work of the Pardon 
Attorney should be performed in the Department of Public Welfare. The Board of Pardons 
should be eliminated. 

Entire management of the State School for the Blind and the State School for the 
Deaf should be transferred to the State Department of Education. 

Entire management of the state sanatoria for tuberculosis should be transferred to the 
State Department of Health; and that Department should be made responsible for the super¬ 
vision of sanitation and for consultative sendees at other institutions and for cooperation 
in the promotion and operation of mental health clinics. 



ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


93 


The University Hospital, including the division known as the Crippled Children’s Hos¬ 
pital, is a part of the State University’s School of Medicine, and should be under the control 
and direction of the State University. 

Responsibility for the education of crippled children in convalescent homes, zvhether main¬ 
tained in connection with the hospital or under other auspices should be definitely assumed by 
the State Department of Education, 

County departments of public welfare should be established in all the counties of the state. 

It should be provided, however, that, with the approval of the State Department 
of Public Welfare, two or more adjacent counties may combine to establish and main¬ 
tain such an agency if conditions render combination necessary. No such combina¬ 
tion, however, should include different counties than those included in a combination 
for any other purpose. 

The county public welfare department should be headed by a board of public welfare, 
which should consist of three members appointed by the board of county commissioners, the 
initial appointments being for one, two, and three years, respectively, and subsequent appoint¬ 
ments for three years. 

At least one member of the board should be a woman. The qualifications for the 
board of visitors for the county home for the aged, of which this board may be con¬ 
sidered a development, might also apply to the members of the new board. 1 In case 
of a combination of counties, the board should consist of representatives from the 
cooperating counties, appointed by the respective boards of county commissioners. 

A superintendent of public welfare should be appointed by the board of public welfare 
from a list of qualified persons certified by the State Department of Public Welfare. 

It will be necessary for the state to extend financial assistance in the payment 
of the salaries of the local superintendents of public welfare. Such assistance should 
be made available on an equitable basis and with proper control by the State De¬ 
partment of Public Welfare. The system of financial aid to be established requires 
further study. 

The functions of the county department of public welfare should be: 

(1) To administer all public relief funds of the county and, as agent of the 
State Department, of all state and federal relief funds. 

(2) To act as the agent of the State Department in all matters pertaining to 
the state welfare program. 

(3) To- make social investigations for all adoptions and to supervise children 
placed temporarily pending adoption. 

(4) To provide probation service for juvenile and other courts. 

(5) With the approval of the State Department of Education, to enforce the com¬ 

pulsory school attendance law. 2 

(6) To provide supervision for persons on parole or probation in the county. 

(7) To supervise local penal, correctional, and other welfare institutions. 

(8) To furnish the State Department of Public Welfare and the state institutions 

such information or service as may be necessary or desirable for the proper operation 

of these agencies. 

(9) To coordinate the work of all public and private agencies in the county to 
the end that social services may be effectively given and the public’s resources con¬ 
served. 

In order to carry out effectively the program of public welfare suggested in this 
report it will be necessary to modify the organization and administration of certain 
institutions and to rewrite the laws pertaining to specific phases of public welfare. 

In the field of child welfare. 

(1) The adoption lazes of the state should be amended to provide for social investigation 


'Stat. 1931, Sec. 7565. 
Stat. 1931. Sec. 7003. 



94 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


before adoption, both of the background of the child and of the adopting family, and. for a 
period of trial placement under the supervision of the juvenile court pending final adaption, 

(2) The Juvenile Court Act should be rewritten, with the emphasis on adequate social 
investigation and probation service. 

In most counties in Oklahoma the only practicable juvenile court is one with 
an ex-officio judge. There are two possibilities. One is to make the county court judge 
the juvenile court judge. The other is to place jurisdiction in juvenile cases in the 
district court and provide for referees for juvenile cases. The first possibility is prob¬ 
ably preferable. It should be made possible for any county to set up a special juvenile 
court, and a few of the larger counties should be required to do so. The jurisdiction 
of every juvenile court should be county-'wide. The probation work for the court 
should be a parti of the services of the county public welfare unit. 

(3) Steps should be taken immediately to bring the educational work in all the institu¬ 
tions for delinquent children to a creditable standard, with the advice and under the super¬ 
vision of the State Department of Education. 

(4) The institutions for dependent children are badly crowded; but no general program 
of enlargement should be undertaken until a well-organised Department of Public W elf are 
shall have determined that such enlargement is desirable. 

It is probable that with an adequate child welfare program a number of the 
children now sent to institutions could be better and more economically cared for in 
their own homes or in foster homes. 

(5) The widows’ pension act should be rezvritten to provide for state participation in the 
appropriation of funds and state supervision of administration. 

The inappropriate name, of course, should be changed and adequate grants for 
the care of dependent children in their own homes provided. The fund now admin¬ 
istered by the State Board of Public Affairs for the support of dependent children and 
the fund now administered by the Soldiers’ Relief Commission for the support of 
dependent children of ex-soldiers might well be diverted to this purpose. 

(6) The policy of subsidising private child-caring institutions, unfortunately begun with¬ 
in the last four years, is unzvise and should be discontinued. 

The state faces a serious problem in connection with its prisons. There are at 
McAlester and Granite about four thousand prisoners. It is impossible to care for 
them in these two prisons. The industries of the prison at McAlester formerly on 
a paying basis are facing a crisis. The demand for its products has fallen off. One of 
its most profitable industries Is on a contract basis. The wisdom of attempting to solve 
the first of these two problems by carrying out the original plans for the new prison 
at Stringtown is being seriously questioned. 

In considering the problem of additional room for prisoners the state may want 
to consider certain facts concerning the prison population of the state penitentiary. 
Of the 6,,559 prisoners committed to the penitentiary within the three-year period 
from July 1, 1931 to June 30, 1934, 1,935 were sentenced for one year or less. Of 
the 9,794 prisoners who were in the penitentiary at some time within this three-year 
period, 4,030 were made trusties by the warden. While there was a large number 
of escapes, 373, more than 90 per cent of these men, under a poorly organized system, 
did not betray the trust imposed in them. 1 

IVith these facts in mind, the state should give careful attention to the type of prison 
necessary for the different classes of prisoners under its control. 

No one style of prison can serve all purposes. Developments in classification and individual 
treatment show the necessity, from the standpoint of custody, for at least three kinds of insti¬ 
tutions, each designed to meet the needs of a particular group of inmates. There are, and al¬ 
ways will be, some dangerous and intractable prisoners whose safekeeping is of paramount 
importance. The old-fashioned “bastile” with modern improvements and facilities serves this 


1 Triennial Report of Warden, 1931, 1932, 1933, pp. 6-27. 



ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


95 


purpose, provided its capacity does not exceed 1200 inmates and that the rule of one man to 
a cell is strictly observed. The larger proportion of prisoners, however, can be housed in 
medium-security or minimum-security institutions which have the two-fold advantage of pro¬ 
viding more normal living conditions and of costing less to build and maintain. Conservative 
estimates, based on careful studies of the penal populations of New York and New Jersey, 
show that from 59 to 63 per cent of the prisoners in those states could safely be cared for in 
open or semi-secure institutions. The successful use of medium and minimum-security units 
depend upon the careful selection of the inmates assigned to them, but where this requirement 
has been observed, the records show that escapes averaged less than one per cent. 1 

Careful study should also he made of the size of prison desirable. 

The American Prison Association at its annual Congress in 1929 arrived at the 
following conclusion: 

RESOLVED, that it is the sense of the delegates present at the 59th Annual Congress of 
the American Prison Association, that the maximum limit on the number of prisoners to be 
housed in any one penal or reformatory institution be fixed at 1200. 

In order to provide adequate study and treatment of the individual prisoner a lower limit 
would be advisable, but under no circumstances should state or federal prisons be designed 
to house a population greater than 1200. 

By the development of a thorough-going state’s use system, including not only the 
articles that may be manufactured within the walls, but also the production of brick 
and stone for buildings, and of road material including brick and crushed stone and 
possibly cement, the demand for prison products within the state may be greatly en¬ 
larged. There seems to be no good reason why prison labor in Oklahoma should not 
produce a large part of the building materials, and other supplies needed by the public 
institutions and agencies of the state. 

No plan of organization or program of operation of a state penal system is adequate 
or effective unless it includes the local jail. Jails in Oklahoma are catch-alls for the 
undesirables of the community. Thel witness, the misdemeanant, the felon, the mentally 
ill, and often the child and the physically ill, are herded in these institutions, con¬ 
demned in general to idleness and to physical and moral deterioration. 

The commitment of children or of the mentally or physically ill to local jails should he 
strictly prohibited. All persons convicted and given definite sentences should be transferred 
to appropriate state institutions where they can be profitably employed. An effective adult 
probation system should be established. The local jail should he used exclusively for the 
detention of those awaiting trial; and. in order further to reduce the number of such persons, 
the bail system should be studied and if possible extended. 

In April of this year it wall have been 70 years since the close of the war between 
the states. Very few bona fide Confederate soldiers remain. The institution at Ard¬ 
more is becoming merely an old folks’ home. With the coming of old age pensions 
with federal assistance, it may be wise to consider whether this institution might be 
closed with profit to the state and without injury to any of the old people now in the 
institution. There are at the Tuberculosis Hospital at Sulphur a few more than 100 men, 
everyone of whom according to the superintendent of the hospital is eligible for admis¬ 
sion to a federal hospital. It is a grave question whether the state should continue 
this service. 

If the hospital is to be continued, it should be under the superznsion of the State Depart¬ 
ment of Health, 

The plant of the Union Soldiers’ Home closed after the veto of the appropriation 
for its maintenance by the Governor, belongs to the state, and is being used to some 
extent as a convalescent home for children from the Crippled Children’s Hospital. 

The state may well give careful consideration to the rehabilitation of this plant and its 
dedication to this purpose. Such a plan, it appears, would make it possible for the hospital 
to extend its sendees to a much larger number of children. 

In all the state institutions, and especially in those for children, there should be inaug- 


3 Handbook of American Prisons and Reformatories, Vol. T., 1933, p. XIX. 



9(3 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


urated, in cooperation with the State Department of Health, a system of medical and dental 
care that will insure to every inmate the most thorough possible physical rehabilitation. 

The goal of a mental hygiene program, of course, will include adequate services in all 
institutions. 

The inauguration of the program suggested in this report involves time. Con¬ 
stitutional amendments are necessary. They must be voted upon by the legislature 
and then submitted to a vote of the people of the state. The Constitution of Oklahoma 
provides that “in no case shall the salary or emoluments of any public official be 
changed after his election or appointment, or during his term of office." This con¬ 
stitutional provision rightly prevents the abolition of the office of Commissioner of 
Charities and Corrections until the end of the term for which the present Commis¬ 
sioner has been elected, which is the close of the year 1938. Apparently it would be 
legal now, however, to create a State Department of Public Welfare consisting of a 
State Board of Public Welfare and an executive officer as hereinbefore recommended. 
This Department would have charge of all the administrative duties and respon¬ 
sibilities now scattered among a number of administrative agencies. The Commissioner 
of Charities and Corrections would continue during her present term of office the ad¬ 
visory and supervisory powers and duties set forth in the Constitution for this office. 
At the expiration of the term of office of the present Commissioner, at the close of 
the year 1038, all the duties and responsibilities of the Commissioner of Charities and 
Corrections would be transferred to the State Department of Public Welfare. The 
divisions suggested could be organized and begin to function. 

In no event should the powers proposed m this plan be placed in the hands of an elective 
official. 


/ 


CHAPTER VI 


LAW ENFORCEMENT AND PUBLIC SAFETY 

Practically every administrative agency is charged with the enforcement of law; 
and a variety of functions and agencies are concerned with the protection of the public 
safety. No term, such as law enforcement, public safety, policing, justice, or criminal 
law administration, adequately describes or comprehends all of the activities which 
call for discussion in this chapter. Such activities are old as government itself. In¬ 
deed, along with the military functions of the state, thej r constituted probably the 
first justification of government, the first form of social control. These activities in¬ 
clude the pursuit, detection, apprehension, and arrest of lawbreakers, their detention, 
prosecution, and trial, protection of life and property, and furnishing legal counsel, rep¬ 
resentation, and defense to public officials. In the United States, these activities were 
provided for at the beginning of established government. Their organization was largely 
determined by early political ideas, which stressed decentralization and local self- 
government. by the nature of law and criminality at that time, and by the economic, 
transportation, and population conditioirs of a rural society. Law enforcement, therefore, 
was early identified with local self-government, distributed among local units, and 
assigned to elected officials. This early organization is inconsistent with modern con¬ 
ditions and modern needs. Yet, deeply rooted in custom, tradition, and political habit, 
it is extremely difficult to change. 

The administrative functions in Oklahoma now to be considered may be classified 
under the following general heads: (1) Apprehension and detention: (2) protection 
from hazards and accidents; (3) regulations; (4) prosecution, counsel, representation, 
and defense; (5) trial; and (6) prevention, statistics, and research. The agencies 
which require examination include: (1) The Attorney General; (2) attorneys attached 
to state departments other than the Attorney General’s office; (3) the State Bar; 
(4) the State Bureau of Criminal Identification and Investigation; (5) the State Fire 
Marshal; (6) the enforcement officers of the Oklahoma Tax Commission; (7) the 
Motor Tag Division and the motor license agents of the State Highway Department; 
(8) the stolen car division of the Highway Department; (9) the oh and gas in¬ 
spectors under the Conservation Department of the Corporation Commission; (10) 
county attorneys; (11) the sheriffs; (12) the coroners (justices of the peace) ; (13) 

the constables; (14) municipal police departments; (15) town and village marshals; 
and (1G) the courts. 

APPREHENSION AND DETENTION 

Officials in a number of different departments are concerned with detecting viola¬ 
tions of law and are given the powers of peace officers. Fish and game wardens are 
an outstanding example. Such officials, engaged in specialized regulatory functions, 
with their incidental law enforcement activities, should for the most part be left 
where they are; and attention will be concentrated on those agencies which are more 
definitely concerned with the apprehension and detention of lawbreakers. 

Sheriffs. Though mentioned in the Constitution, the county sheriff is in effect a 
statutory officer. He is elected for a term of two years. The 77 counties spent on 
th/nr sheriffs’ offices in 1933-341 a total of more than one million dollars. In 35 counties 
reporting in March and April 1935, 1 the sheriff was serving his first term in 19; but. 
in 12 of these counties, he had had previous experience as deputy sheriff. In a few 
counties, this official had served prior to his election as a police officer, chief of police, 
or deputy United States marshal. In 5 counties, the sheriff had had no previous ex¬ 
perience as sheriff, undersheriff, police officer, or other similar position. 

Out of 34 sheriffs reporting, 14 were, before their election, farmers, ranchers, or 
cattlemen. The others included a machinist, two garage operators, a factory foreman, 

lAdair, Atoka, Beaver, Beckham, Blaine, Canadian, Carter, Choctaw, Cleveland, Coman¬ 
che, Cotton, Dewey, Grant, Harper, Haskell, Kingfisher, Love, McClain, McCurtain, McIn¬ 
tosh, Nowata, Okfuskee, Okmulgee, Ottawa, Payne, Pittsburg. Pontotoc, Pottawatomie, Push¬ 
mataha, Sequoyah, Tulsa, Wagoner, Washita, Woods, and Woodward. 



98 ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


two butchers, tiwo salesmen, an oil man, a plasterer, a social worker, a school teacher, 
a grocer clerk, a drug clerk, and a business man. Only one or two could be said to have 
made a career of police work. Although Oklahoma counties, in the selection of their 
sheriffs, appear to attach value to experience, it may be inferred that the sheriff is 
not ordinarily selected because of special qualifications or training for the work. 
Sheriffs, as a rule, are conscientious and hard-working officials; and they are probably 
better qualified in Oklahoma than in some other states; but popular election is not 
adapted to the selection of technically qualified men or to their retention in office. 

The sheriff’s office has three important types of work: (1) The detection and ap¬ 
prehension of lawbreakers; (2) the custody and care of the jail and of jail prisoners; 
and (3)! service as an officer of the court, in connection with criminal trials, summonses, 
subpoenas, foreclosures, tax sales, etc. These latter services, which constitute the 
civil work of the sheriff’s office, take op the average, probably, about a third of the 
time of the sheriff’s force; police work and the care of the jail and of prisoners ac¬ 
counting for the remaining two-thirds. Obviously, one man must be at the jail con¬ 
tinuously ; and either this man or another must be on call in the sheriff’s office. 
For the performance of his office and field duties, the sheriff, according to the law. 
may appoint an undersheriff; and he may also employ deputies, »vith the approval of 
the board of county commissioners. Furthermore; the sheriff may, apparently, appoint 
any number of deputies provided they are paid from the fees earned by them. In 
certain counties, there are special provisions relating to the employment of deputies. 
Unfortunately, it is not possible to state exactly from the data available how 
many deputies, jailers, or other assistants are employed in each sheriff s office. Okla¬ 
homa and Tulsa counties have of course the largest staffs. In some of the other 
counties, however, the entire permanent staff, including the sheriff and jailer (where 
there is one), apparently 1 'numbers not more than two men; in perhaps 16 counties the 
force consists of only three men; and probably in over 30 counties, it comprises only 
four men. Such |a limited staff does not permit any continuous patrolling; nor does 
it make possible any degree of specialization, intensive or thorough investigations, 
working in pairs, or respectable show of force in an emergency. 

The sheriff’s salary, as fixed by statute in 1933, 1 ranges from $1,500 per year in 
counties of 14,500 population or less to $4,000 ,in Tulsa County and $5,000 in Oklahoma 
County; though in these larger counties the maximum statutory salary does not ap¬ 
pear to be appropriated. Deputies’ salaries range as low as $70 a month; and jailers’ 
salaries as low as $50. The sheriff is allowed a mileage of 7% cents a mile for travel 
on official business. But the total for fees and mileage appropriated for the fiscal 
year 1934-35 ranged from $25,000 in Oklahoma County to $250 in Dewey County. In 
a number of counties, the mileage appropriation is exhausted before the end of the 
fiscal year; and the sheriff and his deputies are required to pay their own travel 
expenses, a situation that evidently does not contribute to effective law enforcement. 
The sheriff apparently has no specific appropriation for investigating work. He is 
reimbursed the actual cost of feeding prisoners up to a maximum of 50 cents per day 
per prisoner. This system does not encourage nor make possible contracting for sup¬ 
plies in quantity. Each county transports its own prisoners to state Institutions and 
pays the expense. A substantial saving could be made by having all transportation 
handled by the Department of Public Welfare, which is proposed in a preceding 
chapter. 

From the information at hand, it appears that most of the sheriffs’ offices have 
finger-printing equipment; many of them have radio-receiving sets; a few have radio- 
equipped cars; and perhaps one or two have supplied themselves with bullet-proof 
vests. 

It is evident that the scattering of law enforcement work among the counties re¬ 
sults in the maintenance of 77 different and separate organizations, most of which 
are untrained, underpaid, and inadequately equipped, inflexible and ill-adapted to 
emergencies, neglecting essential aspects of law enforcement work, and, on the whole, 
inefficient and uneconomical. That the difficulty is partly due to the number of coun- 


’Laws, 1933, Chap. 11. 



ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


91) 


ties may be illustrated by* presenting and comparing certain data for tbe three counties 
in tbe 17th judicial district: Choctaw, McCurtain, and Pushmataha. 


Pushmataha 


Total 


Choctaw McCurtain 

Number of: 

Sheriffs _ 

UnderSheriffs _ 

Deputies _ 

Jailers _ 

Monthly salary of: 

Sheriffs _ 

Undersheriffs _ 

Deputies _ 

Jailers _ 

Number of sentenced prisoners in jail _ 

Number awaiting trial _ 

Total appropriation, 1934-35 _ 

Population _ 

Appropriation per capita _ 

Valuation (1933) _$7,335,114 

Appropriation per $1000 valuation _ 

Choctaw has a sheriffs’ force 
three. If three counties had a sin 
aries would be available. But the inequalities in the salaries of undersheriffs and 

deputies could be removed. One jail could care for the 10 convicted prisoners and the 
20 persons awaiting trial, many of whom are probably out on bail. With two men 
in the office and one taking care of the jail, nine men would be available for patrol 
duty and investigations. At present, Pushmataha County with less than half the 
population of McCurtain pays almost twice as much per capita for protection; and, 
with a lower valuation, the tax burden in Pushmataha is heavier. What is true of 
these three counties may be true of any other group of contiguous counties in the 
state. Combination of counties for law enforcement purposes would make possible a 
more efficient and more mobile force and would equalize both cost and protection. 


1 

l 

l 

3 

1 

l 

l 

3 

1 

2 

l 

4 

1 

1 

0 

2 

$163 

$184 

$144.58 


75 

90 

125.00 


75 

90 

125.00 


75 

60 



0 

4 

6 

10 

15 

10 

1 

26 

$9,801 

$12,350 

$9,503 

$31,654 

24,142 

34,759 

14,744 

73,645 

$.41 

$.36 

$.65 

$.43 

- $7,335,114 

$7,383,343 

$4,811,991 

$19,530,448 

$1.33 

$1.67 

$1.98 

$1.62 

of four men; McCurtain, 

five; and 

Pushmataha, 

;le sheriff’s 

office, twelve men at their 

present sal- 


Municipal Police Departments. In the policing of Oklahoma, the municipal police 
departments are more important and more costly than the sheriffs’ offices. Expendi¬ 
tures on city police in 1933-34 amounted to more than $1,300,000, about one-thJird more 
than the cost of sheriffs’ forces. Municipal police organizations are necessarily de¬ 
veloped most highly and operated most efficiently in the larger cities. Thus, the city 
police in Muskogee, Oklahoma, and Tulsa counties accounted in 1933-34 for more than 
one-half of the total cost of city police in the state. 

In 1933-34, the five urban counties, Garfield, Muskogee, Oklahoma, Pottawatomie, 
and Tulsa spent a total of $1,048,608 on their sheriffs’ offices and police departments, 
or about $1.80 per capita. The remaining counties of the state spent $1,322,575, or 
about $ .73 per capita. In the 27 wholly rural counties, 1 total expenditures on sheriffs’ 
forces and town marshals in 1933-34 were $244,043, representing an outlay per capita 
of only $ .04. The rural sections of the state are not receiving per capita either the 
same quality or the same quantity of police protection that is received by the urban 
counties. It is true that their need per capita is not so great. Crimes, particularly 
against property, are relatively more frequent in the centers of wealth and population. 
Yet, as a matter of fact, over extensive areas in Oklahoma there is practically no 
local police protection whatever. Under present-day conditions, apprehension of the 
more dangerous criminals in a state like Oklahoma is likely to be a rural, as much 
as an urban, problem. Moreover, highway patrolling is necessary wherever the high¬ 
ways are. Traffic is heaviest in, but it is not restricted to, the urban sections. Tax¬ 
able resources in rural counties, however, are too meager to provide a mobile or ef¬ 
ficient force. 


Constables. The statute law provides 2 that the board of county commissioners 
must divide the county into six justice of the peace districts; and one justice of the 
peace and one constable are elected biennially from each district. Additional justices 


J Adair, Alfalfa, Atoka, Beaver, Blaine, Cherokee, Cimarron, Coal, Cotton, Delaware, Dew¬ 
ey, Ellis, Grant, Harper, Haskell, Jefferson, Johnston, Latimer, Love, McIntosh, Major, Mar¬ 
shall, Mayes, Pushmataha, Roger Mills, Sequoyah, and Texas. 

2 Stat. 1931, Sec. 4131. 























100 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


of the peace and additional constables are established in the cities and towns. The 
constable, besides acting as officer of the justice court, has duties and powers as a 
police or peace officer, similar to those of the sheriff. It is impossible to say how 
many scores of constables there are in the state; but it is probablel that few of those 
elected are actually functioning as law enforcement officers. 

State Bureau of Criminal Identification and Investigation. The State Bureau of 
Criminal Identification and Investigation, established in 1925, is headed by a superin¬ 
tendent appointed by the Adjutant General, with the approval of the Governor, serv¬ 
ing without term and removable by the Adjutant General at pleasure. In practice, 
appointment and removal are entirely controlled by the Governor. In 1929, an amount 
of $44,000 was appropriated for the Bureau, decreasing to $18,350 for 1934-35. The 
personnel of the Bureau on March 29, 1935, was as follows: 


Position 

Salary 

Length of Service 

Superintendent 

_ $3,600 

3 weeks 

Assistant superintendent 

3,000 

3 weeks 

Record Clerk 1 

2,400 

6 months 

Stenographer-bookkeeper 

1,800 

5 years 5 months 

Investigator 

2,500 

2 years 7 months 

Investigator 

2,500 

2 months 

Investigator 

2,500 

3 weeks 

Investigator 

2,500 

2 weeks 

Classifier 1 

1,800 

Just appointed 

Clerk 

1.500 

4 years 8 months 


Stenographer* 

Clerk* 

The law prescribes that no person shall be appointed to a place in the Bureau 
“until he has satisfactorily passed a physical and mental examination, based upon 
standards fixed by the superintendent with the written approval of the Governor and 
in addition thereto, each applicant must he a citizen of the United States, in good 
health and of sound body and good moral character.” 8 Nevertheless, the superintend¬ 
ent, assistant superintendent, and Investigators are political appointees; and it is 
understood that the investigators are selected on the recommendation of state senators. 

The members of the Bureau have the powers of peace officers; they may, with 
the approval of the Governor, assist any other state agency in enforcing its laws and 
regulations; the Bureau is required to cooperate with county and municipal officers: 
it is charged with establishing a complete system of criminal identification; and it 
must report biennially to the Governor. The bulk of the activities of the Bureau 
relate to the receipt, classification, identification, firing, and exchanging of finger¬ 
prints; the receipt, making, printing, and enlarging of photographs; the maintenance 
of an alias index; work in ballistics; and some laboratory work. It has teletype con¬ 
nections. 

The Bureau has been of value to local sheriffs- and police departments; but its 
shortcomings are conspicuous. Its personnel is insufficient and largely untrained, it 
does practically no statistical work; and makes little contribution to the training or 
coordination of sheriffs and police officers. 

PROTECTION FROM HAZARDS AND ACCIDENTS 

All police and peace officers have protective duties; but two classes of such duties 
are commonly looked upon as having a more or less specialized character. Reference 
is to (1) the work of the State Fire Marshal and 1 (2) motor vehicle traffic regulation. 

The State Fire Marshal. The State Fire Marshal, established in 1911, is appointed 
by the Governor with the advice and consent of the Senate for a four-year term and 
is removable by the Governor at pleasure. 


3 Finger-printing. 

Employed with expectation that salaries would be appropriated 
•Stat. 1931, Sec. 4740. 
















ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


101 


The personnel of the Fire Marshal’s office in March 1985, was as follows: 


Position Salary Length of Service 


State Fire Marshal _ $8,000 2 months 

Chief assistant - 2,500 4 years 

Assistant - 2,000 1 month 

Assistant -:_ 2,000 1 month 

Assistant _ 2,000 1 month 

Assistant - 2,000 4 years 

Secretary - 1,500 8 years 


Every fire which destroys or damages property must be investigated by the State 
Fire Marshal, as well as Y>y the chief of the local fire department (or by the mayor 
where there is no lire department) and also by the sheriff. The officer making the in¬ 
vestigation must report to the State Fire Marshal, who must keep in his office a record 
of all fires occurring in the state. He is especially charged with investigating cases 
of suspected arson and causing the prosecution of persons alleged to have committed 
arson. He seems to be given ample power for the conduct of investigations. The law 
appears weak with respect to building inspections; and few such inspections appear 
to be made. The State Fire Marshal reports annually to the Insurance Commissioner 
and is an ex-officio member of the State Insurance Board. 

The usefulness of this office depends on the cooperation of local officials and on 
the qualifications and experience of the investigating staff. In both respecrs the office 
has been deficient, though there are indications that improvement isi taking place. 

Motor Vehicle Regulation. With respect to traffic regulation and the prevention 
of accidents on the highways, Oklahoma is noticeably backward. Neither the state 
nor any local unit licenses motor vehicle operators; anyone (except when intoxicated) 
may drive art automobile; there is no state highway patrol; and outside of two counties, 
where something! of the sort may be attempted, no patrolling of rural roads is done by 
sheriffs’ offices. No system of reporting and publishing automobile accident statistics 
exists. Statistics, probably incomplete, of deaths from automobile accidents are pub¬ 
lished by the Department of Health. 

For the issuance of tags and titles, the State Tax Commission maintains through¬ 
out the state a total of about 130 motor license agents, who report to the Motor Tag 
Division of the Tax Commission, and are compensated by fees. These fees amounted 
in 1933 to $270239 and in 1934 to $321,319.75. These agents are supposed to act also as 
enforcement officers; and, in some instances, they do report violations of the motor 
vehicle license law. They are supposed also to be instructed and supervised by the 
Enforcement Division of the Tax Commission. 

This Division consists of 14 officers, who have the duty of enforcing all laws, rules, 
and regulations pertaining to the public highways of the state and to the operation 
of motor vehicles thereon, the collection of taxes and fees payable by motor carriers 
under the jurisdiction of the Corporation Commission, and general inspeetional and 
collection work for the Tax Commission. This Division is endeavoring to serve three 
departments. Its officers are not uniformed and do not function as a highway patrol. 
They are not administratively coordinated with the sheriffs and police departments, 
with the tag agents whom they are supposed to instruct, with the Bureau of Criminal 
Identification and Investigation, or with the Stolen Car Division of the Highway De¬ 
partment. 

The Stolen Oar Division maintains four enforcement officers who are not patrol¬ 
men but who investigate titles and registrations. They have the powers of peace 
officers. Sheriffs and chiefs of police are required to report all stolen motor vehicles 
to this Division. It is stated that in 1934. stolen cars reported numbered 1,312, of 
which 651 were recovered. 

REGULATION 

As a general rule, officials engaged in inspeetional or other regulatory work are 
not considered in planning the organization of law enforcement. There may be cases, 
however, where such officials may be advantageously transferred from the agency that 
they primarily serve to a general law enforcement agency. 












102 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


Oil Inspectors. From this point of view, significance attaches to the oil inspectors 
of the Bureau of Oil and Gas Conservation of the Corporation Commission. 

Each oil inspector is authorized to retain during each month 85 per cent of the 
fees collected by him until the amount so retained reaches $150 and afterward to 
retain 25 per cent until he receives $200, all the balance being remitted to the Corpora¬ 
tion Commission. Each inspector is required to reside within the district for which 
he is appointed and none is permitted to make an inspection outside of his district 
except by direction of the Corporation Commission. 

Early in 1935, there were no less than 123 oil Inspectors. All were apparently 
political appointees. They seemed to be subjected to practically no supervision or 
control. No records were available showing the number of inspections made by them 
or the time that they give to their work. 

Their collections are shown below: 


Year Total Inspectors’ Fees State Portion 


1932 _ $245,424.52 $168,976.92 $76,449.60 

1933 _1 _ 249,760.93 168,842.63 80,918.30 

1934 __ 267,653.28 180,499.88 87,153.40 


The work of the oil inspectors is comparatively simple and requires no special 
training or technical competence; and could apparently be done by highway patrol¬ 
men. 

PROSECUTION, COUNSEL, REPRESENTATION, AND DEFENSE 

Prosecution of those violating the law is an essential and important step in crim¬ 
inal law enforcement. Those officials who represent the state in prosecutions are also 
usually those who give legal counsel to public officials and represent the latter when 
made defendants in suits. 

County Attorneys. The backbone of the prosecuting machinery is the county at¬ 
torney. a statutory official elected in each county by popular vote for a two-year term. 
In Oklahoma he is not permitted, during his term of office, to engage in the private 
practice of law. His salary, corresponding except in the most populous counties to 
that of the sheriff, isi fixed by law in proportion to population and ranges from $1,500 
to $5,000. He also, apparently, may receive certain fees and commissions. Expend¬ 
itures in 1933-34 for the county attorneys’ offices totaled $340,132. The number of 
assistant county attorneys is prescribed by law and to a large extent is subject in 
many counties to the approval of the board of county commissioners. 

Out of 41 county attorneys replying to the survey questionnaire, 1 23 had been 
educated at the University of Oklahoma Law School. The percentage of locally trained 
county attorneys will probably steadily increase, giving to the University an oppor¬ 
tunity to lead in raising the standards of public legal work. It is surprising that 
three coupjty attorneys should have had no experience in the practice of law before 
their election and that no less than ten others! should have had two years or less of 
private practice. On the other hand, five of these officials had had fifteen years or 
more of private practice. Apparently, many county attorneys and assistant county 
attorneys are inexperienced young men just out of law school; while a few are middle- 
aged men who have failed in private practice. Such a situation seems almost inescap¬ 
able under present conditions!; for few counties can afford to offer adequate salaries 
and none of them can guarantee security of tenure, so as to attract and hold successful 
lawyers. Only 12 of the 41 county attorneys had served as assistant county attorney 
before their election. No less than 16 had no assistant or stenographer. Nine others 
had a stenographer, but no assistant; while 7 more had an assistant but no stenog¬ 
rapher. In some cases, legal and stenographic assistance is hired for a few days or 
a few weeks during the year. In 35 of the 77 counties in 1933-34 the expenditures on 


'Replies were received from all counties except Atoka. Beckham. Bryan. Caddo. Canadian, 
Carter, Cherokee, Choctaw, Cimarron. Cleveland, Comanche. Craig, Creek, Delaware, Grady, 
Greer, Harmon, Haskell. Jackson, Johnston. Latimer, LeFlore. Mayes. McClain, McCurtain, 
Murray, Oklahoma, Okmulgee Ottawa. Pontotoc. Pottawatomie, Pushmataha, Stephens' 
Wagoner, Washington, and Washita. 










ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


103 


the county attorney’s office were less than .$3,000; and in 10 counties the total was under 

$ 2 , 000 . , 

County attorneys furnish legal advice to county officials. This work takes a minor 
portion of their time and it is impossible to appraise its quality. 

No matter how efficient police organizations may be, law enforcement will break 
down unless prosecutors are approximately equal, in skill, experience, and office equip¬ 
ment, to those who defend the criminal. That they are not equal in Oklahoma is evi¬ 
dent ; anti it Is) quite as evident that prosecution can not be made neasurably sufficient 
so long as the present system persists. 

Sheriffs’ organizations and police departments on the one hand and prosecutors 
on the other do not perform distinct functions; they have different but overlapping 
activities in the exercise of the same tunction. They must cooperate closely, par¬ 
ticularly in the gathering of evidence. Neither the county attorneys nor the sheriffs 
have in general the training, time, or specialized assistants required for the efficient 
collection, of evidence. While there is willingness to work together, cooperation can 
not be satisfactory under present administrative arrangements.. 

Much improvement could be effected in the local prosecuting organization it 
groups of rural counties! could be consolidated or districted. Pooling of resources would 
make possible higher salaries for the county attorney, more assistants, specialization in 
legal counseling, investigational and other work, secretarial assistance, and adequate, 
up-to-date law libraries. Even so, however, the state-wide organization would still 
be defective. It would not permit selection on the basis of merit nor insure security 
of tenure to those who are competent and courageous; it would preclude the stand¬ 
ardizing of salaries; it would render impossible a coordinated prosecuting policy; it 
would prevent the shifting of personnel from one county to another to strengthen a 
county attorney for the prosecution of an important case; it would still be rigid and 
inflexible and discriminatory against the rural counties. 

Coroners.. In Oklahoma, the justice of the peace acts as coroner. The duty of 
the coroner is to locate a special kind of evidence. The coroner’s work is preliminary 
to that of the prosecutor; and there is little doubt that it would be better done if 
transferred to the county attorney. At present, much of the work is actually done by 
the county attorney. 

The Attorney General. The Attorney General is a constitutional officer elected by 
the people for a four-year term and removable only by impeachment. His duties are 
to appear for the state and prosecute or defend in all actions in the Supreme Court 
and Criminal Court of Appeals in which the state is a party; when requested by the 
Governor or by either branch of the legislature, to act in a similar capacity in any 
other court; to give legal advice but only to the legislature, state officers, and county 
attorneys; to pass on the legality of official forms, contracts, and bonds; when di¬ 
rected by the Governor, to bring action against public officials for official misconduct; 
and with the Governor and the State Treasurer to select state depositories. Legal work, 
however, is by no means completely centralized in the Attorney General’s office. Certain 
other agencies appoint their own attorneys; and the Governor has power to employ 
counsel. Under conditions existing in Oklahoma, it .would appear advisable to con¬ 
centrate all legal work in the Attorney General’s office. 


personnel of this 

Position 

office as 

of March 29, 1935, 

Salary 

was as follows; 

Length of Service 

Attorney 

General 


$4,509 

2)4 months 

Assistant 

attorney 

general 

4,000 

15 years 

Assistant 

attorney 

general 

4,000 

17 years 

Assistant 

attorney 

general 

__ .. 4,000 

10 years 

Assistant 

attorney 

general 

.. 4.000 

4 years 

Assistant 

attorney 

general 

4,000 

5 years 

Assistant 

attorney 

general 

.. 3,000 

2)4 months 

Assistant 

attorney 

general 

3.000 

2)4 months 

Assistant 

attorney 

general 

3,000 

2)4 months 

Secretary 



2.400 

2)4 months 

Chief (bond) clerk 


_ 1,800 

2)4 months 
















ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


104 


Position Salary Length of Service 


File clerk _1.800 2% months 

Stenographer _ 1,500 13 years 

Stenographer _ 1.500 0 years 

Stenographer _ 1.500 3 years 

Stenographer _ 1,500 2^> months 

Stenographer _ 1,500 , 2% months 


The Attorney General has practically no control over the county attorneys. He 
cannot assist them, except on their request; lie cannot supersede one of them except 
on the request of the Governor or a branch of the legislature; he cannot transfer a 
local prosecutor temporarily from one county to another; he advises them, but only 
on their request; and they appear to make no reports of any kind to him. 

Hie State Bar. Oklahoma is to be congratulated on its! State Bar Act, enacted 
in 1929. At the head of the Bar is a Board of Governors, consisting of one member 
from each Supreme Court judicial district and four from the state at large. The mem¬ 
bers of the Board are nominated by petition and elected by the active members of the 
Bar. with the approval of the Supreme Court, the Board of Governors fixes qualifi¬ 
cations for the practice of law; examines applicants for admission to the Bar; recom¬ 
mends applicants to the Supreme Court for admission; with the approval of the Court, 
formulates and enforces rules governing professional conduct; prescribes rules relative 
to suspension, disbarment, and other disciplinary measures; and has power to disibar, 
subject to a right of appeal to the Supreme Court. The rules and regulations adopted 
by the Board of Governors are binding on all members of the Bar; and a wilful viola¬ 
tion is punishable by suspension for not to exceed one year. 

The Law School of the University of Oklahoma. A state-supported law school has 
a definite responsibility for maintaining legal and judicial standards at a high level. 
In this country, lawyers become in large numbers our government officials and political 
leaders.. Their professional training, therefore, is a matter of the first importance. But 
a law school faculty should do more than teach. It should cooperate in law revisions 
a,nd codifications, actively participate in movements for judicial organization, and 
form a center of authoritative research in law and its administration. 

TRIAL 

The courts occupy a strategic position in every field of administration; but, in law 
enforcement, they bear a responsibility that is fundamental and practically final. If 
the judiciary fallsj down on its job, policing and prosecution, however well organized 
they may be, are* certain to lose much of their effectiveness. There is reason to believe 
that Oklahoma’s judicial system as a whole is second only to the legislature In general 
disorganization, and inefficiency. Judicial administration is not within the scope of this 
survey; and no presentation of facts, conclusions, or specific recommendations will be 
attempted. The situation is well known to the leaders, of Bench and Bar and is not en¬ 
tirely unknown to the lay public. The present organization and leadership of the Bar 
aie encouraging; and the unofficial Judicial Council is a promising development. The 
time appears to be ripe for the deliberate formulation and vigorous prosecution of a 
planned program looking to comprehensive judicial reorganization. The Board of Gov¬ 
ernors of the State Bar is given pofwer by law “to aid ini the advance of the science of 
jurisprudence and in the improvement of the administration of justice.” 1 

The legislature should provide for a comprehensive expert survey of the judicial adminis¬ 
tration of Oklahoma, to be conducted under the general direction of the Board of Governors 
of the State Bar. 

PREVENTION, STATISTICS, AND RESEARCH 

Due to ; absence of statistical information, little can be said regarding the extent, in¬ 
crease, or decrease of lawbreaking in Oklahoma. With respect to reported homicides. 
Oklahoma in 1929-31 occupied an intermediate position, the rate for white persons being- 
higher than in most of the northern states but lower than in most of the southern • while 


’Stat. 1931, Sec. 4232. 












ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


105 


the rate for colored persons, was about the same as in Arkansas, Louisiana, and Mis¬ 
sissippi and lower than in Colorado, Kansas, and Missouri. The Uniform CVinie Re¬ 
ports, issued by the United States Department of Justice, contain reports from 20 Okla¬ 
homa cities. While these figures are not representative of conditions throughout the 
state, the rates for certain offenses known to the police per 100,000 of population are 
given below for Oklahoma and neighboring states for the year 1934: 


Murder, Manslaughter Burglary, 

State Non-negligent by Robbery Aggravated Breaking or Larceny, Auto 

Manslaughter Negligence Assault Entering Theft Theft 


Oklahoma _ 11.6 2.1 105.6 49.9 616.3 1199.8 264.3 

Texas _ 20.6 6.9 82.8 110.4 568.3 1515.6 528.9 

Arkansas _ 32.9 15.8 124.0 86.4 462.6 988.2 370.8 

Kansas _ 7.7 1.6 105.3 28.1 496.7 1165.6 224.4 

Missouri _ 10.2 4.0 93.1 38.0 303.9 1068.5 276.6 

New Mexico _ 8.9 2.2 ' 57.5 8.9 502.3 1407.4 254.5 ' 

Colorado _ 5.4 3.5 155.8 20.3 784.3 1298.3 441.9 


No figures, either for urban or rural districts, are available to show the number of 
unsolved crimes, or the relation of arrests to known offenses, the relation of prosecutions 
to arrests, or the relation of convictions to prosecutions. It is understood, however, that 
thefts in the rural districts are numerous and that a considerable proportion of these 
thefts are unsolved. 

The State Health Department reports 5S7 motor vehicle deaths in Oklahoma in 1934, 
a lower rate than the national average whether figured on the basis of population or of 
gasoline consumption. The motor vehicle deaths in 1933, however, are reported as 
totaling 463. If this figure is comparable to that for 1934, there was a percentage in¬ 
crease of 27, or about double the national percentage increase. 

General statistics, however, do not reflect accurately the efficiency of law enforce¬ 
ment agencies. The causes of crime ramify throughout the entire social environment 
and many of them are deep seated. Policing, prosecution, trial, and conviction are not 
primarily crime-prevention functions; and it is a common error to place the whole 
blame on law enforcement officers for an apparent increase in criminality. No less 
shortsighted is the common assumption by law enforcement officers that crime can 
be curbed merely by increasing the severity of punishments or by abolishing parole. 
It is now generally recognized by competent students that the public treatment of 
crime should be proportioned to the character — or lack of character- — of the criminal, 
and not to the crime which he happens to commit or for which he may be convicted. 

Convictions are not facilitated, justice is not furthered, and society is not pro¬ 
tected by a law which makes the stealing of a chicken grand larceny, punishable "by 
imprisonment in the penitentiary not exceeding five years, or by fine not exceeding 
two hundred dollars, or by confinement in the county jail not exceeding two months, 
or by both such fine and imprisonment.” 1 

Similarly objectionable is a provision by which a person infected with smallpox, 
syphilis, or gonorrhea may, if he or she intentionally or recklessly spreads the disease, 
be sent to the penitentiary for from two to five years. 2 

What is needed, obviously, in Oklahoma as in other states is a scientific under¬ 
standing of the crime situation, based on a systematic accumulation of statistical and 
other facts, the conclusions to be embodied in an enlightened criminal code and in a 
modernized, efficient public welfare, educational, and law enforcement administration. 

An unpaid commission should be appointed, representing the legal profession, the courts, 
the Attorney General’s office, the police, the sheriffs, educational authorities, child welfare 
leaders, and the penal, correctional, and training institutions, to devise, unth expert assistance, 
and recommend to the legislature a comprehensive system of statistics covering juvenile de¬ 
linquency and adult crime, this system to proznde for mandatory and coordinated statistical 
reporting by the schools, local welfare agencies, the police, sheriffs, county attorneys, courts, 
jails, and the state public welfare, educational, and law enforcement agencies. 


Stat. 1931, Sec. 2276. 
Stat. 1931, Sec. 2434. 












ORGANIZATION ANI) ADMINISTRATION OF OKLAHOMA 


hk; 


REORGANIZATION 

To give reasonable assurance of effective law enforcement, reorganization should 
include revision of the criminal law and a recasting of the entire judicial system. 
Definite improvement and substantial long run savings may be brought about by re¬ 
organizing a number of the agencies described in this chapter. Such reorganization 
should recognize the fact that crime under modern conditions can only be successfully 
combated by a closely integrated state organization, coordinated with similar or¬ 
ganizations in other states and with the federal Department of Justice. 

The changes called for in the creation of such an organization in Oklahoma can 
probably best be made in steps, rather than all at once. 

First Step. The first step in reorganization should create (1) a state police force 
and (2) an improved prosecuting and legal organization. 

A Department of Public Safety should be established, headed by a superintendent ap¬ 
pointed by the Governor. This Department should include : 

(a) The present Bureau of Criminal Identification and Investigation; 

(b) In addition to the present personnel of that Bureau, 25 or 30 uniformed police 

to patrol the highways and assist local police officers; 

(c) The present staff and functions of the State Fire Marshal; 

(d) The functions and revenue of the oil inspectors of the Corporation Commission; 

(e) The stolen car division of the Highway Department; 

(f) The enforcement functions of. the motor license agents of the Tax Commission, 

these agents to be abolished and their licensing duties transferred to local officials; 

(g) Probably two of the enforcement officers now operating under the State Tax 

Commission. 

A drivers’ license lazv should be enacted and its enforcement assigned to the Department 
of Public Safety. 

Unless or until the personnel system recommended in a later chapter is adopted, all mem¬ 
bers of the Department of Public Safety except the superintendent, all local police officers 
not under municipal civil service, and all undersheriffs, deputy sheriffs, and jailers should be 
employed only after competitive examinations, the examining board to consist of the Superin¬ 
tendent of Public Safety, the Attorney General, and the Chief Justice of the Supreme Court. 

The Department of Public Safety should conduct annually a training school for sheriffs 
and other peace and police officers. 

Transportation of convicted offenders from the counties to state institutions should be a 
function of the proposed State Department of Public Welfare. 

All county attorneys should be appointed without term and removable by the Attorney 
General. He should be authorised to appoint, in lieu of the county attorneys 'in any judicial 
district, a single district attorney. The county and district attorneys should be paid by the 
state, and should be solely responsible to and directed by the Attorney General. Such attor¬ 
neys should be permitted to engage in private practice with the permission of the Attorney 
General and under rides and regulations formidated by him. 

All legal officers attached to any state agency should be appointed and assigned to that 
agency by the Attorney General. 

Second Step. The changes outlined above are not likely to prove permanently suf¬ 
ficient. Eventually, a further advance will have to be made. 

The sheriff should be appointed by the district court; he should serve only as an officer of 
the court and as keeper of the jail. This institution should be a place of detention only for 
adult persons awaiting trial. The sheriff’s law enforcement duties should be transferred to the 
State Department of Public Safety, the state police increasing in number to pro-’ide adeguate 
protection throughout the state. 

Third Step. Assuming the accomplishment of the second step, the state would 
still lack a unified law enforcement organization. 

All city chiefs of police and town marshals should be appointed, after competitive examina¬ 
tions, by the State Superintendent of Public Safety. 

Constables should be abolished. 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


107 


Justices of the peace should he eliminated, their judicial duties transferred to other courts 
and their coroner’s duties to the county or district attorney. 

Fourth Step. Fliinmtely, the law enforcement organization should be completely 
integrated. 

The Constitution should be amended to provide for the appointment of the Attorney Gen¬ 
eral by the Governor; and the Attorney General should head a Department of Justice, formed 
by combining the Department of Public Safety with the Attorney General’s office. 


CHAPTER VII 

PUBLIC HEALTH 

The Constitution 1 directs the legislature to create “a Board of Health, a Board of 
Pharmacy, and a Pure Food Commission, and prescribe the duties of each." Instead 
of establishing a board of health, however, the legislature provided for a Commis¬ 
sioner of Health, appointed by the Governor for a four-year term coterminous with 
that of the Governor. 2 In 1911, the firs<t appropriation was voted for the actual or¬ 
ganization and functioning of a State Department of Health. 

GENERAL PROBLEMS 

Functions and General Organization, In the act of 1907-08, the Commissioner 
of Health was empowered to make and enforce any and all needful rules and regula¬ 
tions for the prevention and cure of disease, for restricting the spread of any contagious 
and infectious diseases, and for the promotion in general of the public health. In 
1909, provision was made for a state laboratory, the work to be done at the Univer¬ 
sity of Oklahoma; but the laboratory, given more adecpiate facilities, was definitely 
placed in 1915 under the Commissioner of Health. Purchase and distribution of biol¬ 
ogies were provided for in 1911. Registration of births, deaths, and marriages was 
established in 1917. In 1919, legislation for the control of venereal diseases was en¬ 
acted. and two tuberculosis sanatoria established. Legislation has also been enacted 
for the treatment of ophthalmia neontorium and the free distribution In this connec¬ 
tion of nitrate of silver. Appropriations were voted for maternity and infancy hy¬ 
giene in 1923. Legislation followed in 1927 for the manufacture of typhoid vadeine in 
the state laboratory and for malarial control. A law was passed in 1929 authorizing 
the establishment of local health departments; but parts of the act were declared un¬ 
constitutional and the whole was so considered. 

The Commission of Health, at first serving part time, was made a full-time official 
in 1919. An assistant commissioner was provided for in 1915. In that year, “Food 
Inspectors” were created; and the birth of the Vital Statistics Bureau occurred in 1917. 
The Bureau of Maternity and. Infancy was created in 1923. 

A perusal of the state laws affecting public health since Oklahoma was admitted 
to statehood reveals a constructive and encouraging trend. From a mere skeleton 
organization in 1907, with no fiscal recognition, and beginning with 1911 when the 
first appropriation was made, the Health Department has gradually grown, with or¬ 
ganizations of state health service in its various branches which are recognized as 
sound public health procedure. However, some new legislation is necessary, certain 
changes in the existing law should be made, and certain new positions provided for. 

Although the Constitution specifically authorized the legislature to create a Board 
of Health and although the legislature of 1907 did legally create such a board, to date 
this Board has never been appointed. Boards of health are recognized as invaluable 
adjuncts to state health departments and it is through a board of health that the ad¬ 
vantages of group thought can be obtained whereby the state commissioner of health 
can better coordinate his activities and cooperate with various unofficial health or¬ 
ganizations, educational institutions, and the medical profession. 

A State Board of Health should be established by law and should consist of either seven 
or nine members, appointed by the Governor. The majority should be doctors of medicine. 
The Board should elect the Commissioner of Health, with the approval of the Governor. 
This Commissioner should possess recognised qualifications and should meet with the Board 
but not having z>oting power. Members of the Board should have staggered terms, so that at 
all times a minority number would be neiv appointees. 

Under the statutory provisions in force since 1907, the inauguration of a new 
governor every four years generally meant the appointment of a new health commis¬ 
sioner. Since 1907, there have been eight Governors and two Lieutenant-Governors 


’Art. V, Sec. 9. 

J Stat. 1931, Secs. 4443-44. 



ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


109 


who served as Governors, and nine Health Commissioners, including the present one. 
In fact, with the exception of the first appointee, who served two terms, each adminis¬ 
tration has seen a new Commissioner. These frequent changes tend to create vacilla¬ 
tion in policy and confusion in office organization. 

The law should, be amended so that the State Health Commissioner may be appointed 
for an indefinite term. 


The general laws of the state provide Statutory positions for technical supervisors, 
administrators, clerks, and janitors. Not only are positions statutory, but fixed sal¬ 
aries are provided for. The result is, when old and tried employees, who have served 
at the same salary for many years, are replaced by political appointees, the replace¬ 
ments receive, at the beginning, the same rate of pay. The turnover in the Health 
Department is 50 per cent or more every four years. 

/ 1 is accordingly recommended that the Health Commissioner be given an appropriation 
for clerical salaries in such form that the maximum need not be paid at first and promotions 
might be given in proportion to service and experience. 

One of the greatest handicaps in the proper functioning of the State Health De¬ 
partment is the feeling of employees regarding tenure of office. Wide-spread political 
patronage is the inevitable result at every change of administration, working to the 
disadvantage of effective and economical administration. From the point of view of 
public health administration, a state civil service system would be beneficial. For 
example, this year the State Registrar, who had been 'in the Department for twelve- 
years, was replaced by a new appointee, who had never had any experience with vital 
statistics work other than serving as county registrar for a short time. The As¬ 
sistant Registrar, with four years’ experience, was replaced by one quite unfamiliar 
with these duties. The state is making fairly large appropriations for the payment of 
registrars for reporting Antal statistics, but this money is not wisely spent, in fact 
much of it may be jwasted, if an untrained force is expected to handle the reports as 
i-eceived. 

Although the state statutes provide for a Bureau of Engineering in the State 
Health Department, curiously enough the engineer alone is the Bureau. No provision 
whatever is made for any clerical assistance, nor for any assistant sanitary engineers. 

There is no statutory provision for any other physician in the Department than 
the Commissioner himself. By all means there should be an epidemiologist appointed 
to supervise the collection of morbidity statistics, the development of rural health 
units, and to act as Assistant Commissioner of Health in the absence of the Com¬ 
missioner. 

Appropriations. The first appropriation for a State Health Department in Okla¬ 
homa, that voted in 1910. amounted to $33,600 for the biennium, or '$16,800 per year. 1 
in 1923-24 there was an appropriation of $183,670 for each year, the first to contain 
funds for the operation of the Maternity and Infancy Bureau and for a Bureau of 
Venereal Disease. Provision was also made for sanitary inspectors Avith traveling ex¬ 
penses. The 1925-26 appropriations Avere made in amounts of $129,879.48 for each 
year, a marked decrease, which is partly explained by a reduction in the amounts al- 
loAved for the Maternity and Infancy Bureau for each year by about $5,000. There 
was an allowance of only $7,000 for venereal disease instead of the $20,000 appropria¬ 
tion for each of the previous two years, as well as other disallowances in contingent 
and travel funds. In 1927-28 the annual appropriations, $143,526 and $142,725 show 
an increase which provided for $2,500 for the manufacture of typhoid vaccine; $5,000 
for control of malaria, together with certain increases in travel and supplies. 

The legislature of 1929-30 allowed for these fiscal years the sum of $196,950 and 
$195,950, respectively. In these years large appropriations for the Maternity and 
Infancy Bureau were made, with a printing allowance alone for this Bureau of $7,000. 
Inspectors were increased from four to six in number, Avith one supervisor over them; 
$10,500 was appropriated for venereal disease control, and $35,000 ;was allowed for 


’$4,600 of this appropriation was vetoed by the Governor. 



110 ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 

rural sanitation activities. A Governor's veto reduced the amount for each year to 
$183,450. In the fiscal years of 1931-32 again is found a reduction in the appropria¬ 
tions made, $108,900 and $100 900, respectively, due to bad business conditions and the 
general depression which extended over the country and the economy wave fo.low¬ 
ing. The Governor vetoed certain amounts providing for printing, supplies, contingent 
fund for automobiles and for the Maternity and Infancy Bureau, approximately $0,000 
for each year. In 1933-34 the appropriations were for $97,210 for each fiscal year, 
but the Governor rendered the Maternity and Infancy Bureau inactive by vetoing the 
entire appropriation therefor for the two-year period, amounting to $10,300 for each 
fiscal year. Nothing was vetoed for this period of time except funds for the Maternity 
and Infancy Bureau. Although this appropriation was responsible for reductions in 
certain salaries, contested cases resulted in a favorable ruling by the Supreme Court 
of the state to the effect that the exact amount as provided by general law must be 
paid, which was done from funds other than the appropriation. 

There follows the annual budget under which the Department of Health is now 
functioning. This, however, does not represent the true scale of salaries, as each 
employee, according to a Supreme Court decision, is receiving the amount provided 
for by general law. 

Administration : 

Commissioner ___$ 3,840 

Assistant Commissioner_ 2,100 

Secretary-stenographer _ 1,320 

Bookkeeper_ 1 500 

Maternity and Infancy Bureau : 

Director 1 _ 2,100 

Secretary 1 ___ 1.200 

Field nurses (4 at $1,500 each) 1 _ 6.000 

Bureau of Diagnostic Laboratory : 

Chemist _ 2,400 

Assistant chemist _ 1,500 

Bacteriologist and director _ 1,800 

Assistant bacteriologist _ 1.800 

Record clerk_ 1.200 

Extra help (Janitor) _ 900 

Manufacture of typhoid and toxoid vaccine __ 2 500 

Bureau of Sanitary Engineering : 

Sanitary engineer_ 2,800 

Bureau of Pure Food, Drugs and Sanitary Inspection : 

Inspectors (4 at $1,500) _ 6,000 

Bureau of Vital Statistics : 

Registrar _ 2,000 

Assistant registrar _ 1,200 

Statistical clerks (2 at $1,200 each) _ 2,400 

Contractual Services : 

Travel in the state—administration _ 6,000 

Travel in the state—M. and I. 1 _ 4.000 

Communication _ 3.500 

Printing—administration _ 2,500 

Printing and office supplies-—M. and I. 1 _ 3,000 

Supplies: 

Office supplies - 500 

Medical supplies - 7,000 

Equipment: 

Office equipment ___ 250 

Laboratory equipment _- _„__ 5 __ 900 

Bureau of Epidemiology : 

Bureau of Rural Sanitation of Disease Control in Rural Districts and 

County Health Units and Dental Health Education _17,500 


’Vetoed by Governor 
































ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


111 


\ 

Bureau of Malaria Control _ 7,500 

Total _ $97,210 

Less amount vetoed - 80,910 

Plus back salaries _ 90,050 


With due allowance for depression years there has been marked fluctuation in ap¬ 
propriations and policies. For example, a Bureau of Maternity and Infancy was es¬ 
tablished in 1928 with funds to operate; in 1925, after it was firmly established and 
rendering good service, the appropriation for its maintenance was greatly reduced, and 
this during prosperous times. Furthermore, in 1929 large appropriations, much larger 
than in the past, were made for the continuance of this Bureau, indicating an appre¬ 
ciation for the good service being rendered; but in 1931, although the legislature made 
fiscal provisions as in the past for this Bureau, certain of its activities were curtailed 
by a Governor’s veto; while in 1933 we find that the Governor completely stopped all 
maternity and infancy activities by vetoing the entire appropriation for this Bureau. 
Since that day, this Bureau has ceased to exist. Venereal disease control started in 
1923 with an appropriation of $20,000, which was reduced to $7,000 in 1925, then in¬ 
creased in 1929-30 to $10,500. For the past four years there has been no special ap¬ 
propriation for this work, but it has been carried on to a certain extent by the pur¬ 
chase of supplies from the rural sanitation disease control fund and the medical sup¬ 
plies fund. 

Intensive rural sanitation activities were started as early as 1925, with the as¬ 
sistance of the Internal Health Board and the United States Public Health Service; 
and in 1929 a state appropriation of $35,000 was made for this purpose. Although 
the legislature still makes small appropriations for this service, none of the eleven 
counties that were operating under full-time health units now has this service, with 
the exception of two—LeFlore and Seminole—both recently revived. 

Such striking fluctuations in appropriations, due to the different personal ideas of 
governors and state health officers, who simultaneously hold office for four years be¬ 
fore a new Governor and a new Commissioner are chosen, causes lack of stability 
in public health policies, makes future planning impossible, creates uncertainty in the 
minds of employees as to tenure of office, and is not conducive to economy in public 
health administration. 

The percentage of all state appropriations taken by the Department of Health 
lias varied froim 0.630 to 2.24. 

Appropriations per capita for public health in Oklahoma since 1929 have been : 

1929 — 8 cents 1932 — 7 cents 

1930 — 8 cents 1933 — 4 cents 

1931 — 7 cents 1934 — 4 cents 

The average per capita amount appropriated for the 48 states is about nine cents 

per capita. 

General Morbidity and Mortality Kates. A brief review of available sickness and 
death rates, from submitted reports on file, will indicate the need for a proper func¬ 
tioning State Health Department, as well as furnishing a compass by which such an 
organization can steer its activities. The tabulations here given, prepared from rec¬ 
ords for the past five years, may be considered fairly accurate .with respect to mor¬ 
tality, Oklahoma being in the Registration Area, but denote merely a trend in mor¬ 
bidity, as only about 60 per cent of practicing physicians report diseases as required 
by law. This is evidenced by the death rate exceeding the case rate in some dis¬ 
eases, and being out of all proportion in others. There is. however, an encouraging 
decrease in the incidence of certain reportable diseases, considering the same variable 
of error, notably, diphtheria, malaria, pellagra, scarlet fever, smallpox, and typhoid 
fever. 

All of these are preventable and are indicative of control measures through in¬ 
vestigations and health education. In the last annual report of the State Health Com¬ 
missioner, submitted December 15, 1934, covering the period of December 1, 1932 to 
December 15, 1934, are found these statements : 







112 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


During the past two years, over 200,000 children have been immunized against 

diphtherija. 

There is no doubt that typhoid vaccination by County Superintendents of Health and by 
local physicians over the state, on a large scale, has played a vital part in the reduction of 
this disease. Vaccine has been mailed out from the State Laboratory covering the period 
from December 1, 1932 to December 1, 1934 in sufficient amounts to immunize 100,500 people. 

During this period covering two years, the State Laboratory furnished sufficient smallpox 
vaccine to vaccinate 90,848 people. _ 

The use of these biologies, the campaign against .malaria, and the building of 
sanitary privies through work relief and the distribution of yeast as an anti-pellagra 
measure are shown in the aggregate by the curve downward of the morbidity index. 

Immunizations through vaccinations and inoculations are only temporary. They 
must be repeated and initiated in the case of new babies born each year. Serious 
consideration must also be given to great numbers of people coming into the state, 
many non-immunized, following mining developments or the opening of new oil or gas 
fields. The state, through its Department of Health, has a distinct responsibility to 
protect its own citizens against disease, following such an invasion. 

Yet no epidemiologist is provided for in the health budget to develop better mor¬ 
bidity reporting and to assist the State Health Commissioner in general disease pre¬ 
vention. 

Morbidity and mortality figures, based on reports on file in the State Health De¬ 
partment, are shown below: 




1930 

1931 

1932 


1933 

1934 1 


Morbid 

Mortal- Morbid- 

Mortal- 

Morbid- 

Mortal- 

Morbid- 

- Mortal- Morbid- 


ity 

ity 

ity 

ity 

ity 

ity 

ity 

ity 

ity 

Diphtheria 

1217 

277 

2072 

290 

1S34 

333 

1462 

294 

607 

Influenza __ 

__ 2443 

500 

3792 

467 

26256 

720 

5805 

506 

2893 

Malaria __ 

2219 

135 

1518 

12 

1161 

96 

1581 

111 

870 

Measles _ 

4222 

9 

755 

9 

920 

7 

2646 

7 

9432 

Meningitis 3 _ 

88 

171 

64 

167 

36 

167 

81 

211 

62 

Mumps __ 

246 

_ 

214 

5 

307 

2 

425 

3 

522 

Pellagra 

fill 3 

321 

7 • t> 

239 

178 

161 

1' 7 

1 1 

) 

Pneumonia 2 

1628 

i 833 

1951 

1537 

1878 

1364 

1656 

1248 

2232 

Scarlet Fever 

1385 

41 

1490 

37 

1235 

35 

1020. 

16 

873 

Smallpox 

2560 

18 

3968 

11 

533 

1 

177 


109 

Tuberculosis 2 

485 

1205 

600 

1284 

731 

1187 

856 

1252 

481 

Typhoid Fever and 

_ 









Paratyphoid' 

1128 

305 

3 056 

263 

939 

239 

861 

258 

742 

Whooping Cough 

_ 721 

137 

467 

58 

696 

75 

455 

69 

846 

Gonorrhea 

. 2074 

3 

1730 

6 

1445 

1 

1448 

3 

1617 

Syphilis 

1635 

92 

1482 

101 

1449 

94 

1683 

103 

1889 

Dysentery 

274 

65 

184 

20 

127 

13 

293 

29 

231 

The recent 

trend in 

Oklahoma 

in the 

death-rate of 

infants 

and children is 

shown 

below: 










Year 


Population 



Deaths Under 1 

Year 

Rate per 1000 

1929 

2.369.130 (Estimated) 



2,991 


1.26 


1930 

2,396,040 (Census) 



2,738 


1.14 


1931 

2,424.000 (Estimated) 



2,228 


.92 


1932 

2,440,000 (Estimated) 



3.020 


1.24 







5 Years to 9 Years 



1929 

2.369,130 (Estimated) 



60S 


.257 


1930 

2,396,040 (Census) 



591 


.250 


1931 

2,424,000 (Estimated) 



519 


.214 


1932 

2.440,000 (Estimated) 



455 


.187 



The Oklahoma Indian. In Oklahoma there are about 110,000 Indians, represent 
mg 4.8 per cent of the total population. These Indians are scattered throughout the 
state, but certain counties are thickly populated, such as Adair with over 25 per cent 
Indian population. 

Among this Indian group the Indian office is carrying on clinical (hospital and 
out-patient) and certain public health activities. This latter service consists of It 
public health nurses and 14 hospitals and field physicians, concentrated for the most 
pait among the agencies west of Oklahoma City. The state is rendering excellent co- 


’Mortality figures not available for 1934. 
5 A11 forms. 


























ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


113 


operation in examining blood for tbe Wassermann tests sent to the laboratory by In¬ 
dian Service physicians, furnishing biologies for immunizations on request, and admit¬ 
ting, whenever possible, Indians to state hospitals and sanatoria under the same con¬ 
ditions that apply to white citizens. Recently the Governor has appointed an Indian 
Welfare Committee to study the possibilities of state and federal cooperation in con¬ 
nection with the general public betterment of the Oklahoma Indian. These studies 
should help point the way to a greatly improved health service among these citizens. 

Full-time county health organizations with the state and Indian Office cooperat¬ 
ing would give to Indians and whites alike the same measure of health service, which 
is by far the best method of approach to Indian and white health problems, living as 
they do in close association. In Oklahoma there are no- closed Indian reservations, 
as the term is used. The Indians have about the same illnesses as the whites in about 
the same ratio to population, except for a higher incidence of tuberculosis and 
trachoma. The infant death rate is very high. No smallpox has been reported for 
any Indians since 1930, in which year only four cases were reported for this group. 
This is explained by the fact that, through the health work carried on by the Indian 
Service, extensive vaccinations have been accomplished. 

The birth rate and death rate of the Indian is much higher than that of the 
general population of Oklahoma and the registration area, although there is a favor¬ 
able balance between the birth rate and death rate of the Indian. The mortality rate 
among the Oklahoma Indians is over twice that of the state of Oklahoma and of the 
registration area, due, it is believed, to the high infant death rate and the death rate 
of tubercular Indians. The morbidity reports, however, do not indicate the high in¬ 
fant sickness rate nor the high tubercular index. This indicates the inaccuracy of any 
kind of morbidity reporting. The death rates as relating to Indian population can 
only be considered as estimates. The Indian death rate from tuberculosis is from 
seven to eight times that of the white 

A close study should be made in cooperation with the Indian Office of the Indian health 
needs of the state and serious consideration should be given to a full-time county health ser¬ 
vice which u’ill give to the Indians and whites alike the same full measure of health protection. 

Licensing Boards. Oklahoma has established a number of licensing boards, most 
of which have some relation to public health. Under Oklahoma law, chiropractors 
and osteopaths are permitted to practice in state institutions. These various boards 
have been discussed in a preceding chapter and recommendations made concerning them. 

PERSONNEL, INTERNAL ORGANIZATION, AND OPERATIONS 

The personnel of the Health Department, as now provided by statute, and its 
duties are the result of slow but constructive legislation during the past 28 years. 
It has not been possible within that time to give the state the full measure of public 
health service intended by well-meaning legislators and officials, due to curtailment of 
appropriations, governors’ vetoes of various allotments for certain activities, and vacil¬ 
lating policies concerning the relative importance of certain types of health service. 

Personnel. Provided appropriations are available, it is possible under the laws for 
Oklahoma to have a State Health Department composed of the following personnel: 

Administration : 

Commissioner of Health 
Assistant Commissioner of Health 
Chief clerk 
Bookkeeper 
3 Stenographers 

Laboratory : 

State Chemist 
Assistant State Chemist 
Bacteriologist 
Assistant Bacteriologist 

Bureau of Maternity and Infancy; 

Director 

Stenographer 

Head nurse (Public Health) 


114 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


6 Nurses (Assistant Public Health) 

Bureau of Publicity : 

Director of Publicity 
Stenographer 
Bureau of Engineering: 

Sanitary Engineer 
4 Supervisors of food and drug 
8 Food and drug inspectors 
Bureau of Vital Statistics : 

Registrar of Vital Statistics 
Assistant Registrar 
3 Statistical clerks 

At the time of this survey, the Department was so reduced in personnel and so 
curtailed in activities that any service approaching adequate health protection was 
impossible. Public health education has almost ceased to function; no funds have 
been available for the Bureau of Maternity and Infancy since 1933; of the eleven full¬ 
time county health units in previous operation, only two remain; the sanitary en¬ 
gineer hast been placed in temporary charge of the state laboratory, which at present 
has no director; and a new vital statistician and assistant statistician, with no ex¬ 
perience whatever ini this specialty, have replaced employees of long training and 
experience. 

The bright spot in this picture is a new Commissioner of Health with prior public 
health experience, appointed by the Governor solely- on merit, upon the recommenda¬ 
tion of the State Medical Society, and in no way a product of political patronage. 
Upon assuming office, just one week before this health survey was made, he found the 
following personnel in liis department: 

Administration : 

Assistant Commissioner of Health 

Chief clerk 

Bookkeeper 

3 Stenographers 
Laboratory : 

State Chemist 
Assistant State Chemist 
Bacteriologist 
Assistant Bacteriologist 
Record clerk 
Bureau of Engineering: 

Sanitary Engineer 

4 Inspectors of food and drugs 
Bureau of Vital Statistics : 

Registrar 

Assistant Registrar 
3 Statistical clerks 
Special Funds: 

5 Stenographers 
3 Special nurses 
1 Mailing clerk 
1 Milk inspector 

An analysis of the present organization and functions of the State Health Depart 
ment suggests administrative changes which are believed would develop a more ef¬ 
ficient service. 

The title "Assistant Commissioner” should he changed to “Director of Food and Drugs ” 
salary' $2,400, to be in charge of the state food and drug inspectors and operating under the 
direction of the sanitary engineer. 

A separate Bureau of Public Health Education is not necessary and should be eliminated 
General health and dental health information should be disseminated under the direct super¬ 
vision of the Commissioner and coordinated with the activities of the Bureau of Maternity and 
Infancy and of the full-time county or district health units. 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


115 


A state advisory nurse, operating directly under a director of county health service, should 
be appointed. 

Her duties would entail general field visits to public health nurses in local health 
units, those connected with the Maternity and Infancy Bureau, and others engaged 
in field service, and giving advice relative to program planning and actual field opera¬ 
tions. she could also evaluate the qualifications of all public health nursing appli¬ 
cants and furnish a list of approved applicants to local health officials. Needless to 
say, tfie qualifications of this advisory nurse should be of the best, viz., high school 
graduation or its equivalent; graduation from an accredited school of nursing; regis¬ 
tration in at least one state; completion of an academic year’s course in public health 
nursing or its equivalent; and finally, at least five years' successful public health nurs¬ 
ing experience, two of which have been spent in supervisory or advisory work. 

The State Laboratory. The State Laboratory was established in 1915, and has 
been in continuous operation since that date. It now operates under the state sanitary- 
engineer. The itemized reports of the examinations made by the Laboratory during 
the past five years indicate that it is rendering a< valuable service to tfie state, with a 
minimum of appropriation and with a personnel consisting of two chemists, two bac¬ 
teriologists, and one clerk. The clerical force of the Laboratory is augmented by two 
special clerks paid from other funds and who also render stenographic and clerical 
assistance to the sanitary engineer. Some consideration should lie given to additional 
clerical personnel for the Laboratory in considering tfie increased output of service 
throughout the years. A director should be appointed, either the chemist or bac¬ 
teriologist, and the sanitary engineer should be relieved of this supervision. 

A director of the State Laboratory should be appointed from the present personnel and 
the Laboratory should be supplied with an adequate clerical force. 

Sanitary Engineering. Although the Bureau of Sanitary Engineering was one of 
the first provided for in the initial health legislation in 1907, curiously enough one 
engineer and he alone has constituted this Bureau. He is charged with: Examining 
and approving plans and specifications for all water-works improvements made by 
any municipal or private corporation, company, or institution; supervising the opera¬ 
tion of their water-works system; investigating any complaints relating to the sani¬ 
tary quality of the water supplies; examining and approving plans and specifications 
for all sewerage projects to be constructed by any person, company, corporation, in¬ 
stitution, or municipality and supervising the operation of these plants; investigating 
any complaint relative to the pollution of the waters of the state and issuing orders 
for the abatement of the pollution; supervision of the design and operation of swim¬ 
ming pools; milk control in standard ordinance cities; inspection and certification 
to the United States Public Health Service of water supplies used on interstate carriers; 
malaria control, including educational and construction work; organization of com¬ 
munity sanitation programs; directing an annual school for water and sewage plant 
operators: and advising the National Park; Service on matters pertaining to sanitation 
within the state park areas. Only one engineer, with no provision for clerical help, 
is expected to do this. 

The Bureau of Sanitary Engineering should consist of the following personnel : One 
chief engineer, two assistant engineers, and one clerk. The sanitary engineer should be re¬ 
lieved of his duties as director of the State Laboratory. 

The Health Commissioners have appreciated the value of this work and have sup¬ 
plemented personnel for both clerical and technical work from other appropriations. 
For the years 1931 and 1932 additional technical workers were provided through funds 
furnished by the United States Public Health Service. 

No supervision is exercised at this time over the water supplies, sewage disposal, 
or milk supplies of state institutions, although efforts have been made to have this 
work transferred to the Health Department where it could be economically handled. 

The Bureau of Sanitary Engineering should exercise supervision over water supplies, 
sewage disposal plants, and milk supplies of state institutions. 


116 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


At the present time there are 322 municipal water systems, serving approximately 
half of the state population. Of the 322 supplies 62 are treated in complete purifica¬ 
tion plants, and, according to a 1934 census, the state of Oklahoma, was ninth among 

the states having such water treatment plants. Fortunately, there has not been a 
water borne epidemic brought to the attention of the Health Department for over ten 

years; but, unless the personnel in charge of the water plants is trained and state 

supervision is provided, this condition can not continue, for the waters of the state are 

becoming more polluted and plants in the hands of untrained personnel can not con¬ 

tinue to produce safe supplies. Schools of instruction for water and sewage plant op¬ 
erators are held annually at the Oklahoma Agricultural and Mechanical College, 
under the direction of this Bureau and the College, for the purpose of raising the 
standard of these men. Incidentally, legislation is now proposed requiring the super¬ 
intendents and operators to hold a license issued by the Health Department before they 
can be placed in charge of a water or sewer system. 

With respect to sewers and sewage disposal, a census taken in 1934 shows that 

Oklahoma has progressed rapidly in this field of sanitation; for with 191 sewer sys¬ 
tems, serving a population of 983,324, Oklahoma ranks thirteenth in the Union, and 
the 157 sewage disposal plants, serving a population of 773,784, places the state seventh 
in the list of 48 states. Despite this progress, the problem of operation is always pres¬ 
ent, and the only way in which it can be handled is! through state supervision. It is un¬ 
reasonable at this time to expect small communities to pay for the technical help 
which is needed to operate these plants efficiently. 

In addition to the existing duties of this Bureau, steps should be taken to pro¬ 
mote sanitary inspection of dairies. There are approximately 6,000 dairy farms in 
the state, but without any inspection whatsoever to the benefit of the dairymen or to 
the general milk consumers. 

The only milk inspection carried on as a special state function is that done by 
the State Department of Agriculture. This service consists of four inspectors ap¬ 
pointed by the President of the State Board of Agriculture, who in turn is elected by 
the people. The duties of these inspectors consist in visiting creameries and cream 
stations (distributors) in cities and towns in order to determine the degree of cleanli¬ 
ness of plants, the content of butterfat, and to collect certain license fees. Dairy in¬ 
spection, in general, is left to the local health agencies, city and county, which means 
that no dairy inspection is done. The .state veterinarian, under the Department of 
Agriculture, makes tests for bovine tuberculosis and Bangs disease. All reactors are 
destroyed. 

The milk supply of the state is. according to law, under the jurisdiction of the 
Board of Agriculture, where it rightfully belongs so far as the quantity of production 
is concerned, but the sanitary problems incidental to the production of milk should 
be in the hands of the Health Department, with definite legislation providing for this 
and with adequate personnel to enforce any rules and regulations to be promulgated. 

At present there is one! milk inspector, who is apparently well qualified, attached 
to the State Sanitary Engineer for the purpose of state dairy inspection in areas where 
the Standard Milk Ordinance is in effect. His salary is being paid from a special 
fund. In substance, the only dairy inspection is furnished by this one individual. 
Provision should be made for at least four dairy inspectors, operating under the Health 
Department in the Bureau of Engineering, to promote local dairy inspections and the 
standard Milk Ordinance. Primarily, these state dairy inspectors should stimulate in¬ 
spection of dairies by the local communities and not make this work an exclusive 
state function: but there will be places where dairies are operating but where no 
local inspection can be established. In such places, it is to be expected that the state 
dairy inspector will when directed by the State Health Officer actually investigate con¬ 
ditions. If and when full-time health units are set up in the counties, it is reasonable 
to assume that this work will be carried on by the county inspector. It is recommended, 
in summary, that— 

A system of local sanitary inspection of dairies should he promoted under the Bureau of 
Sanitary Engineering. 



ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


117 


In 1928 and 1929, there were 179 and 154 deaths, respectively, from malaria, at 
about which time malaria control activities were started and have continued to some ex¬ 
tent up to the present time. The statistics for 1933 report 115 deaths from malaria, 
and the 1934 records, which are not complete, indicate there will be less than 100 
deaths from this disease, representing approximately 200 cases to each death. In the 
southeastern and eastern sections of the state, malaria is a serious health problem; 
and, although records indicate a decrease and also indicate that the work started by 
the State Health Department under the control of the sanitary engineer has con¬ 
tributed materially to this reduction, more adequate provision should be made for state 
malaria control work. Appropriation for this work in the past has provided for a 
limited amount of drainage and for the purchase of quinine for free distribution. Cer¬ 
tainly, such service should be intensified in areas needing it and if the advances which 
have been made are followed up this death rate can be further reduced, reducing also 
an economic loss of over $1,000,000 a year. 

So far as possible, malaria control measures should be extended, especially in the south¬ 
eastern area, funds permitting. 

From December 1, 1933 to December 1, 1934, under the direction of the sanitary 
engineer, 25,110 sanitary privies were constructed and 109 sewer connections installed 
throughout the state, at a cost of $458,310.74 for labor furnished by work relief. 

Fond and Drugs. For food and drug inspections there are four inspectors whose 
principal duties are the collection of license fees from food establishments, drug stores, 
and grocery stores. The general average yearly collections obtained through this in¬ 
spection service and turned over to the State Treasury amount to about $15,000. With 
respect to the value of these inspections from a sanitary point of view, it is evident 
that if these inspectors did not collect license fees nobody would, which would mean 
no inspection whatever. With no inspection there would be no check of any kind on 
sanitary procedures in food establishments when complaints are submitted from time to 
time, with a resulting proprietary indifference. It would be distinctly advantageous if 
collection of fees could be taken out of the hands of inspectors so that their time could 
be devoted exclusively to actual sanitary inspection of food establishments, in the true 
meaning of the word, assuming that inspection is in the hands of persons trained in 
this type of work. The four inspectors who have been on duty for the last four years 
were, it is said, about to be replaced by new appointees having no training or experi¬ 
ence in sanitary inspection duties. 

Qualified food inspectors should be appointed and should operate under the Director of 
Foods and Drugs; and these inspectors should be relieved, as soon as may be practicable, of the 
duties of collecting license fees. 

As previously stated, the title of “Assistant Commissioner of Health” should be 
changed to “Director of Food and Drugs.” 

Bureau of Vital Statistics. This Bureau could well use the services of two addi¬ 
tional clerks, one as a “Searcher” of previous records, and an additional typist to copy 
such records. The work is months behind in furnishing these data on requests that are 
continuously being received. On March 1, 1935, the Bureau was placed under a regis¬ 
trar, assistant registrar, and one new clerk, who are untrained. 

In previous years the payment of registrar’s fees, 25 cents for births 25 cents for 
deaths, and 25 cents for burial permits was made by counties. The counties could 
not afford to carry this load, which resulted in so few reports being received that there 
was danger of the state being omitted from the Registration Area. It had been ad¬ 
mitted in 1928, which means that at least 90 per cent of deaths and 90 per cent of births 
are reported to the Vital Statistics Bureau. To correct this situation, in 1933 the state 
undertook to pay for this service. 

Two additional clerks should be provided for the Bureau of Vital Statistics. 

Bureau of Maternity and Infancy. This Bureau at the present time is not function¬ 
ing, but, if reestablished, it is believed that it should operate under the Director of 
County Health Service. The position of head nurse provided for in this Bureau should 


118 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


be abolished, as the state advisor of public health nursing, previously recommended, 
could function as head nurse of this Bureau together with her other duties. 

The Bureau of Maternity and Infancy should be reestablished wider the Director of 
County Health Service. 

Local Health Service. Full-time county health service lias almost ceased to func¬ 
tion, except in two counties. It is vital not only to re-establish full-time health service 
in those counties where it previously existed, but to extend this service to as many 
additional counties as possible, using one county as a unit or a group of counties as a 
district, as provided by the law of 1929. There is no more important phase of state 
health work than full-time county health service. These decentralized units, providing 
the remedy for state needs in their respective jurisdictions, are types of service which 
no state health official can really do without, as they facilitate his work to a tremendous 
degree. The fact that this is recognized is shown by the development of rural full-time 
health service since 1912. In that year there was only one county in the United States 
enjoying such a service. Today, 550 counties, with approximately 25 per cent of the 
rural population, are provided with full-time health service. 

There is now found in Oklahoma a part-time health service, which means a prac¬ 
ticing physician, who is appointed as a part-time county health officer, called the super¬ 
intendent of health. Part-time health officers are paid on a fee basis, for investigation 
of nuisances, quarantine, and sanitary inspection. 

At the present time there appears to be no regulated system for the care of the 
indigent sick in the counties by the county government except these cases that are 
referred to state institutions. In addition to the part-time health officers, a county is 
supposed to appoint a county physician for the care of the indigent sick on a variable 
fee basis depending upon the population of the county. This service is provided in some 
localities; in others it is not. 

As rapidly as possible, the full-time county health units should be reestablished; and if 
necessary, groups of counties should be organised as district health units. 

In each county or district, a Division of County Health Service should be established under 
the direction of a qualified physician, made responsible for the organisation and operation 
of full-time local health service. 

Venereal Disease Control. As previously indicated, venereal disease activity has 
been more or less spasmodic. Appropriations for it have ranged from $20,000 per annum 
to $7,000, and in some years have been cut out entirely. For the present fiscal year 
nothing was appropriated. It has, therefore, been impossible to operate venereal dis¬ 
ease control measures on the basis of long-time planning. At one time, prior to 1980, 
the state maintained a clinic in Oklahoma City, which in the main provided free treat¬ 
ment for local residents. This clinic is not functioning at present. It might be said that 
the funds appropriated for this purpose have mostly been expended for the purchase ot 
arsenicals, to be supplied to physicians in the various parts of the state for the treat¬ 
ment of indigent cases. Money appropriated for venereal disease control work in the 
future, it is believed, could be best expended by the continuation of the purchase of 
remedial drugs for the care of the indigent and for co-operation in the establishment 
of clinics where full-time health service is established. 

Venereal disease control measures should be amplified by the furnishings of arsenicals to 
physicians for the care of the indigent sick and establishment of clinics in cooperation zvith 
full-time local health units. 

Bureau of Epidemiology. Although there is no statutory provision for a Bureau 
of Epidemiology so-called, through necessity one has developed in the State Health De¬ 
partment. In 1921 the first appropriation was made for epidemiological work, in the 
amount of $10,000. Since then the amount has been generally fixed at $5 000. 

Supervision was at first given to this Bureau by the Assistant Commissioner of 
Health, a layman. As his office entailed various other duties, little >vvas done toward 
epidemiological investigation. In 1925 a full-time physician was placed on duty as State 
Epidemiologist and served until July 1932, at which time the Bureau w T as discontinued. 

It was not until 1935 that a system of morbidity reporting was installed. This 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


119 


is now in effect and consists of mailing out about 2,500 cards each week to the phy¬ 
sicians of the state for reporting to the State Health Department reportable diseases. 
When the Bureau of Public Health Education ceased to operate in 1931, the duties of 
mailing out all health bulletins and literature was assumed by the Bureau of Epidemi¬ 
ology. At the time of the survey, the Bureau consisted merely of a record clerk and 
a mailing clerk, whose chief duties were the collection of morbidity statistics from the 
profession, and tabulating and sending in reports! each week to the United States Public 
Health Service. In addition to these duties, this record clerk also received monthly re¬ 
ports from the various health officers in the state, part time and full time. A Bureau of 
Epidemiology is essential in any State Health Department and to serve the needs 
of Oklahoma should be composed of at least one epidemiologist, who should be a phy¬ 
sician, one record clerk, and one additional clerk, with travel expenses allowed to the 
epidemiologist. The functions and duties of the state epidemiologist are numerous. In 
general, he should be in active charge of the collection of morbidity reports and should 
investigate epidemics that occur from time to time throughout the state. He should 
also make special investigations when requested by the State Health Commissioner, and 
act as Commissioner when necessary. 

A State Epidemiologist should be appointed as soon as possible. 

Tuberculosis and State Institutions. The tuberculosis death rate among white per¬ 
sons in Oklahoma was 40 per 100,000 in 1928, 1929, 1930, and 1931. In 1932 it was 
about 38. For the colored, it was 140 in 1928, 160 in 1929, 165 in 1930, 176 in 1931, 
and 140 in 1932. In the Registration Area of the United States, the death rate per 
100,000 for tuberculosis was: 

1930 — 71.5 1932 — 62,9 

1931 — 68.2 1933 — 59.5 

It is recommended in the chapter dealing with public welfare that the state tuber¬ 
culosis sanatoria should be transferred to the exclusive control and management of the 
Department of Health: and it is also proposed that sanitary and consultative services 
to the other welfare institutions should be provided by the Department of Health. 
Provision for such services is particularly necessary in the case of the institutions con¬ 
cerned with mental disease and mental deficiency. Mental hygiene is becoming more 
and more recognized as an important part of a public health program; and the state 
and local public health agencies should actively cooperate in the organization and con¬ 
duct of mental health clinics. Similarly, public health agencies should cooperate in the 
rehabilitation of the physically disabled and in work for crippled children. 

During this survey it was said that children admitted to the School for the Deaf 
are received on the advice of their practicing physician and when admitted are accepted 
as being actually totally deaf with no further examination. It certainly would seem 
that supplementary examination should be given by qualified specialists to determine 
whether or not the child is actually totally deaf and whether any form of treatment 
would be effective or not. There is no physician connected with this school. One of the 
local physicians from Sulphur visits the institution upon request. 


i 


CHAPTER VIII 

STATE HIGHWAY ADMINISTRATION 

Oklahoma became a state in 1907, and a State Highway Department was created 
in 1911. Up to tills time the state had little in the way of permanent road construction. 

Most states have had the advantage of rime and experience and have proceeded 
by slow processes from the pioneer stages when road improvement and maintenance 
depended upon local units dealing with highway problems limited almost exclusively to 
local areas and relying entirely upon local taxation for funds, up to flm period when 
the advent of the motor vehicle so extended the radius of vehicle operations that traffic 
was no longer bearing any relationship to established governmental units. This condi¬ 
tion brought about an almost immediate demand for the development of highway facili¬ 
ties, accompanied by an enormous outlay of taxpayers’ money, and by an increasing 
complexity of iinanciai, technical, and administrative problems. 

The methods by which these problems have been met vary greatly in the different 
states. Most states have classified their highways according to traffic importance. Be¬ 
tween state and local units a varying allocation of administrative and financial re¬ 
sponsibility has been established. In general, the attempt lias been made to divide 
the cost) of local and state highway construction between the beneficiaries; but invariably 
the state primary road systems have been emphasized in legislative consideration. 

The history of the gasoline and vehicle license tax and the history of improved 
highways cover approximately the same period. The initial demand for improved high¬ 
ways, however, was met in its initial stage, in most instances, by state bondl issues, 
But highway development now depends almost exclusively upon taxation of motor ve¬ 
hicles and motor fuel, based on a theory of use and benefit, and these taxes supply 
a substantial, assured, and, with proper administration and planning, possibly an 
adequate source of highway revenues. Local control of highways has gradual 1 y yielded 
to centralized authority. Organization in the state ranges from a state highway de¬ 
partment controlling an integrated primary system of highways, with cr without certain, 
advisory or supervisory power over local units controlling secondary or rural roads, to 
exclusive state control of all highways, eliminating completely county and township 
organizations. Into this revolution of transportation methods and highway administra¬ 
tion, Oklahoma was precipitated shortly after its organization as a state. New principles 
and new machinery to cope with this rapid devt lopment had to be hastily devised, coinci- 
dently with a rapid increase in population, a mushroom growth of powerful industries, 
and the malignant influence of partisan politics. 

The roads of Oklahoma are classfied by law into three systems: State highways, 
county highways, and township highways. The state highway system, as defined by law, 
is made up of intercounty and interstate highways embracing at least 5 per cent of* the 
county highway system of each county. The county highways are composed of all roads 
within any county designated as such by the county commissioners, less any part desig¬ 
nated as state highways and comprising not more than 25 per cent of the public highways 
in the county. It is the duty of the commissioners to designate, construct, and maintain 
those roads which best serve the people in their travels in the county. The. township 
roads are those under the jurisdiction of the township government, and, where town¬ 
ships have been abolished, ad roads of the county not classified as state or county 
roads. State highways are controlled exclusively by the State Highway Commission; 
county highways by the county commissioners: and township roads by the township 
organizations and, since these have been abolished, by the county commissioners. 

ORGANIZATION 

The act of 1911 creating the Oklahoma State Department of Highways prescribed 
that the Governor should appoint a State Highway Commission subject to the approval 
of the Senate. Through lack of appropriation, the activities of tlile Department from 
1911 to 1915 were confined largely to encouraging and developing a public interest in 
roads in which assistance, financial and otherwise, was obtained from various good road 
associations throughout the state in 1915, the legislature reorganized the Highway 
Department, a new commissioner was appointed and provision was made for a state 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


121 


highway engineer, assistant engineer and a secretary. The duties of the commissioner 
were enlarged, requiring him to furnish engineering service in drainage, sanitation and 
other public improvements. Provision was made for a system of state highways .which 
was to consist of from 10 per cent to 15 per cent of the road mileage of each county 
and for an ad valorem levy of *4 mill to he used by the counties in constructing high¬ 
ways. A tax was placed on motor vehicles, 10 per cent of which was: retained by the 
state and 00 per cent returned to the treasurer of the counties in which the owner of 
the automobile resided. 

The first appropriation for road purposes of $1,000,000 for each of the fiscal years 
ending June SO, 1918-1919 was made in 1917, designated to be expended in the construction 
of state roads and bridges under the supervision of the county commissioners, but in ac¬ 
cordance with plans prepared by the State Highway Department. At the same time 
the legislature enacted the necessary provision for state participation in federal road 
funds. The license fee for motor vehicles, which had been based upon horse power, was 
changed to initial valuation. In 1921 the legislature authorized the issuing of improve¬ 
ment bonds by the various counties for the construction of a county system of highways. 
All maintenance work during this period was under the supervision of the counties. 

Between 1915 and 1924 the State Highway Department developed into an organiza¬ 
tion of centralized authority. Statutory recognition was given for the first time to 
highway building and maintenance as a state function. The control of main arteries 
of travel was brought under a single responsible head. In 1924 the legislature repealed 
the law providing for a State Highway Commission to consist of three members ap¬ 
pointed by the Governor with the advice and consent of the Senate, and increased the 
powers and duties of the commissioners. In 1927 the law was amended to provide for 
a State Highway Commission of five members, to be named by the Governor with the 
advice and consent of the Senate and provided overlapping terms of five years. In 1929 
the law was again amended, reducing the Commission membership from five to three 
members, to be appointed by the Governor with the advice and consent of the Senate 
for overlapping terms of six years. In 1933 the law was again changed to provide for 
a Highway Commission of four members, appointed by the Governor with the advice 
and consent of the Senate, with six-year overlapping terms, except for the secretary 
who, though a member of the Commission, holds office for two years. These commis¬ 
sioners held office until February 21, 1935 when with the change in administration three 
of them resigned and their places were filled with new appointees. 

From 1911 to 1924, six different commissioners were at the head of the State High¬ 
way Department; and from 1924 to 1935 inclusive the Highway Commission has been 
changed four times by legislative enactment. The average term of service of a highway 
commissioner and of a state highway engineer has been a little more than two years. 
The significance of these two facts when viewed from the standpoint of sound business 
management becomes immediately apparent. 

The creation of the three-man Commission in 1924 marks th(e real beginning of 
highway construction in Oklahoma, although the stimulus of provisions for participation 
in federal funds had caused the legislature previously to enact a law authorizing the 
counties toi vote bonds, the proceeds of which were turned over to the State Highway 
Department to be usied ;with federal] funds in building roads in the counties authorizing 
bond issues, or were used by the counties in constructing county roads, most of which 
were later embraced in the state highway system. 

Statutory Set-up. The State Highway Commission as now constituted] is composed 
of four members appointed by the Governor with the approval of the Senate, the approval 
of the Senate being the only statutory limitation placed upon the Governor in appointing 
commissioners. The Commission elects one of its members chairman and one vice-chair¬ 
man ; and one is appointed and confirmed as secretary, whose term of office is for two 
years. The other three commissioners are appointed with overlapping terms, the full 
term being six years. Each member of the Commission receives a salary of $4,800 per 
year and expenses and is subject to removal from office by any court of competent juris¬ 
diction for wilful neglect of duty, corruption of office, drunkenness, incompetency, or any 
offense involving moral turpitude. 

Tenure of Commission. It w#s assumed that legislative enactment prescribing a 


122 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


system of overlapping terms for the Commission would render it impossible for the ap 
pointing authority to dominate highway policies immediately or directly through the 
power of appointment, and that it would render more effective that continuity of po.icy 
essential to efficient highway administration. 

The history of th/e Highway Department from its inception shows how this provi¬ 
sion of law has utterly failed to accomplish the end desired. Every change in admin¬ 
istration since 1911, with one or two exceptions, has witnessed a repeal or amendment of 
the highway law, the old commissioner or commissioners being ousted and new ones in¬ 
stalled. The average service of a highway commissioner since (he creation of the 
Department has been approximately two and one half years while the legal term of 
office has ranged from four to six years. Naturally, the position of the chief engineer 
and the technical staff of this organization has been affected by such unwholesome manii>- 
ulations. The average term of service of the state engineer has been a little less than 
that of the commissioners, a fact that is of course significant; but a much greater signi¬ 
ficance would be found in the information as to what the term of service of these 
engineers would have been, had they made consistent efforts to control the administrative 
and technical details of the works of the department for which they are responsible. 

General Powers aiul Duties. The Highway Commission is charged by law with the 
construction and maintenance of the state highway system; it is given power to make 
all final decisions and ad rules and regulations it may deem necessary not inconsistent 
with the law for the proper management and conduct of all highway work, in such man¬ 
ner as shall be to/ the best interests of the people of the state; and it is vested with the 
powers and duties necessary and proper fully and effectively to carry out all of the 
objects of the highway act. It has in addition the following specific powers and duties: 

(a) Have supervision of highways and bridges which are constructed, improved or main¬ 
tained, in whole or in part, by the aid of State moneys, and of highways constructed, in whole 
or in part, by the aid of moneys appropriated by the United States Government, so far as such 
supervision is consistent with the acts of Congress relating thereto. 

(b) Prescribe rides and regulations not inconsistent with this Act or other laws of the 
State of Oklahoma, fixing the duties of all persons employed by the State Highway Commission, 
and prescribing the manner of cooperation between county, township, and city officials with the 
State Highway Commission. 

(c) Investigate and determine upon the various methods of road and bridge construction 
in the different sections of this State and as to the best methods of construction and mainte¬ 
nance of state highways and bridges. 

(d) Aid at all times in promoting highway improvement and maintenance throughout 
the state. 

(e) Let, or supervise the letting, of all contracts for construction or improvement of 
state highways or any contract for road or bridge construction of improvement work where 
the work is being done in whole or in part with federal moneys. 

The Commission determines exclusively administrative policies affecting state high¬ 
way development ; and it is subject to no restrictions in creating a working organization 
to carry out its policies and program, except as it may be influenced by the chief execu¬ 
tive or members of the Senate through the powers of appointment and confirmation. It 
will be noted that the legislative provisions confer no advisory or supervisory powers 
on the Commission over the conduct of county or township road activities, but provide 
only that the Commission may prescribe rules, regulating the manner of cooperation 
between county, township and city officials with the Commission. 

Plans and Policies. The internal organization of the Commission is not functioning 
in all matters in accord with the intent of the law under which it was created. The 
Commission has, on its own authority, divided the state into as many commissioner’s 
districts as there may at the time be commissioners; and each commissioner is assigned 
a particular district, with an allotment of highway funds to each commissioner, the 
amount of which may or may not lie determined by the proper requirements of a co¬ 
ordinated state highway system. In the appointment of commissioners, the practice 
of appointing a resident from each district has been followed. Whatever may have 
been the intent of the legislature, this plan of organization is not indicated in the act 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


123 


The result has been that highway work has, in many respects, been controlled by four 
individual commissioners and not by one coordinated Commission of four members, 

The purpose of a state highway organization is to produce a coordinated system 
of state highways conforming to economic and traffic needs. The goal of a state high¬ 
way system will never he reached so long as a commissioner’s primary interests are 
centered in his district and not in the state as a whole. The existing situation has 
rendered rational planning impossible and mistakes unavoidable. It is possible to 
point out specific instances where district considerations have determined what road 
should be added to the system, the location of district offices, shops, maintenance dis¬ 
trict headquarters, and local staff appointments. In fact, all manner of operations in, 
the districts are largely controlled by the commissioner from the respective districts. 
It is assumed, of course, that ail such acts receive the approval of the full Commission. 

The division of the state into districts is inherently unsound, and this method of operation 
among the commissioners should be discontinued. 

Planning. The building of a highway system must contemplate the formation of a 
comprehensive plan for the development of an adequate system consistent with modern 
economic, social, and traffic needs, and a reasonably correct evaluation of future re¬ 
quirements. 

In the development of Oklahoma’s state road system, the necessity of rational 
planning has not been given full recognition. It does not appear that there has been 
the requisite unity of policy, plans, and operation. Ok’ahoma for years has paid the 
price in taxpayers’ money for the lack of a plan that would point the most economical 
way to the desired end. In short, the money so far expended for highw r ays has not 
brought maximum results. The division of the state into commissioners’ districts, the 
great need and demand for the rapid extension of improved mileage, and the sentimental 
appeal and demands for preferred treatment by political and sectional selfish interests 
have operated effectively to prevent such results. In the further development of the 
state system, a coherent plan, broad enough 1o embrace present and future needs, is 
essential for immediate use in the operations of the Department. 

The fundamental facts for sound highway planning can he obtained only from a com¬ 
petent traffic and economic survey giving due attention to the equitable collection and 
distribution of highway revenues and adequate treatment of all classes of roads, state, 
county, and township. The data collected should be comprehensive enough to indicate 
the relative importance of all roads, regardless of present legal classification, and 
evaluate their benefit not} only to the direct user but to all : others. 

The traffic and economic surveys recently conducted by the United States Bureau 
of Roads in Michigan. Illinois, and Wisconsin are striking illustrations of work that 
must be done to secure facts essential to sound highway planning. The cooperation of 
the federal Bureau of Public Roads in such surveys) for Oklahoma can no doubt be 
obtained. 


It is recommended that when and if the traffic and economic survey has been made and 
facts obtained necessary for the formulation of a comprehensive highivay program, a com¬ 
mission be created by legislative authority composed of broad-gauged men selected from the 
legislative branch of the government, and including the chairman of the Highivay Commission, 
the state highivay engineer, and representative citizens to study such surveys and to plan the 
future highivay program , this plan to be followed by the Commission and observed in legisla¬ 
tive enactments. 

Cost of Commission. The following table shows the costs of the Highway Commis¬ 
sion and of general administration, compared with the total operating budget for the 
years 1930 to 1934. 


Year 


General and Administrative 
Departments 


State Highway 
Commission 


Total Operating 
Budget 


1930 

1931 

1932 

1933 

1934 


$2,144,654.93 
1.8S5,340.87 
1,589,023.64 
1,086,694.62 
1,057,292.33 


$21,356.39 

37,549.34 

26,659.56 

32,991.08 

36.570.98 


$20,217,085.83 

14.777,159.14 

12,251,281.33 

14,568,299.50 

15,577,233.37 





124 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


The figures below show the disbursements for the State Highway Commission from 
July 1, 1924 to December 31, 1929. 1 


July 1, 1924 to June 30, 1925 --1 8,465.01 

July 1, 1925 to June 30, 1926 _ 9,696.82® 

July 1, 1926 to Feb. 10, 1927 _ 4,055.33* 

Feb. 10, 1927 to June 30, 1927 _ 11,299.12 

July 1, 1927 to June 30, 1928 _ 29,599.86 

July 1, 1928 to June 30, 1929 _ 25,770.69 

Calendar Year 1929 --- 21,356.39 


It will be noted that the deliberations of the Highway Commission over a period of 
eleven years have cost those paying highway taxes the sum of $244,014.18. In the 
fiscal year 1927-28, the five-man Commission cost the motor vehicle user $29,509.86, 
while in the calendar year 1930, the three-man Commission cost $21,356.39 with a total 
operating budget of $20,217,0S5.83. While in 1931 the same Commission cost $37,549.34, 
with a total operating budget of $14,777,159.14. In 1934 a four-member Commission 
cost the vehicle user $36,570.98 with a total operating budget of $15,577,233.37. In the 
five years from 1930 to 1934, the deliberations of the three and four-man Commissions 
cost the taxpayers $155,127.35. 

Tlie Secretary. The secretary’s official status is apparently that of a general man¬ 
ager created by legislative action for the purpose of managing any part of the opera¬ 
tions of the Department the commissioners may elect to entrust to him. The act creating 
the Highway Department provides for a member of the Commission to be appointed 
as secretary and assigns to him the following specific duties: 

The Secretary shall keep full and true records of the proceedings of the Commission 
and shall be the custodian of all books, records, maps, documents, papers and files connected 
with or belonging to the Commission or department of highways. He shall have general 
charge of the department office and shall superintend and have control over all assistants, 
clerical help and employees not under the direction of the chief engineer and for the pur¬ 
pose of effectually performing such powers and duties he shall be and is hereby authorized 
and empowered to appoint and employ all such assistants, clerical help, laborers, and other 
employees as he, with the concurring approval of a majority of the members of the commis¬ 
sion may deem necessary at salaries or wages to be fixed by the Commission. 

The possibilities of this arrangement are extensive; but soujid reasons for it are 
not apparent. The commissioners could, at their option, transfer any part of the 
organization to the control of the secretary. The latter now has under his supervision 
the purchasing department, along with aeronautics, correspondence clerk, and mailing 
department. The retiring chief accountant or auditor states that he is operating under 
the supervision of the secretary, although the Department’s organization chart co¬ 
ordinates! him with the office of the chief engineer, 'where he properly belongs. One 
result has been that the assistant chief engineer has his assistants, who handle federal 
aid work, which has comprised the bulk of all road work in the state for several years, 
have found it necessary to keep a separate set of accounting records. The head of the 
accounting department should be subjected to the same control on the part of the chief 
engineer as other administrative personnel. 

The proper duties of a secretary to the Commission could be efficiently performed 
by a member of the clerical staff. 

The position of member secretary to the Commission should be abolished. 

The Stale Engineer. The state engineer is appointed by (lie Commission. His 
salary, fixed by law, cannot exceed $4,800 a year. In the event of a tie vote on any 
matter before the Commission he may cast the deciding vote and for that purpos ■ 
only he becomes a member of the Commission. 

The law provides that the state engineer so appointed shall be a civil engineer 
with established reputation qualified in road and bridge, drainage hydraulic and sani- 


RJnless otherwise noted all data used in this report have been supplied by the Oklahoma 
Highway Department. 

“Includes disbursements for salaries and travel expense only under three-man Commission. 










ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


125 


tary engineering and with at least five years experience in highway construction. He 
is also charged by law with the following specific powers and duties. 

The chief engineer, with the concurring approval of a majority of the members of the 
commission, shall be empowered to appoint and employ such assistant engineers, clerical help, 
laborers and other employees as may be deemed necessary for the proper discharge of the 
duties connected with the construction, repair and maintenance of highways under the super¬ 
vision and control of the state department of highways, and all such assistant engineers, 

clerical help, laborers and other employees shall possess such powers as may be delegated 

and perform such duties as may be assigned to them by the said chief engineer and the sal¬ 
aries and/or wages of each shall be determined by the commission. 


There are no safeguards provided by la'w securing the chief engineer from removal 
from office, regardless of how efficiently and conscientiously he may perform his duties, 
'fhe power of arbitrary removal acts as a leverage to control his actions and the 
average term of service of Oklahoma highway engineers does not indicate that this 
power has not been abused. 

Departmental Organization and Personnel. The business and technical operation 
of the Department are centered in the State Highway Commission, with the state 
engineer and the secretary coordinating the department of designing, engineering, 
construction, maintenance, and auditing or accounting, with their respective subordinate 
divisions, each department being under the supervision of an administrative head. 
Among the specific powers and duties vested by law in the Highway Commission the 
following are enumerated: 

The commission shall determine the number of employees necessary for the proper and 
effective discharge of the duties and powers thereby vested in it and shall fix and determine 
the salaries or wages to be paid for the services rendered or labor performed and may change 
and control the same from time to time as it, by majority action, may determine; salaries 
and wages to be in accord with other departments of state for like character of service. 


Under the policies generally followed in the appointment of state highway com¬ 
missioners, it rarely happens that such commissioners possess the requisite technical 
knowledge or the experience in administration to enable them to assume complete 
administrative and executive responsibility in directing technical operations. Never¬ 
theless, With few exceptions, administrative and executive functions, extending even 
into the field of technical operations and decisions are exercised by the commissioners, 
in many instances without consulting with the chief engineer. 

The power of approval and confirmation given to the Senate has placed in the 
hands of politically-minded legislators a source of patronage which has been exercised 
to the fullest possible extent. The conclusion is inescapable that politics has dominated 
the Department. It would seem unnecessary to point out the seriousness of a situa¬ 
tion that so vitally affects the efficiency of an organization, which should depend on 
the efforts of experienced and technically trained men. Men whose lives are devoted to 
professional service and whose livelihood is dependent upon that service nave a right 
to expect reasonable freedom from the hazards of patronage politics. Only under the 
stress of economic pressure now existing is if conceivable that competent and trained 
technical men devoted to their profession, would be willing to risk their professional 
career to the uncertainties of a service where regardless of professional skill, com¬ 
petency, and devotion to duty, they are subject to removal for causes unrelated to their 
efficiency or conduct. 

In making appointments, the general practice is to send the appointee to the 
chief engineer or department head with instruction that a particular employee be 
dismissed and this man placed in his place. Frequently the appointee so designated 
possesses no qualifications, either in training; or experience, to perform the duties of the 
man whose place he is taking. For example, during the period of this survey, an 
engineer on field survey work was ordered dismissed and his place to be filled by a 
man with absolutely no engineer training or experience. A division engineer was 
dismissed and his successor appointed without consultation with the state highway 
engineer. In fact, the change had been made and the new division engineer had tak¬ 
en his place before the chief engineer obtained his first knowledge of the transaction 
from a daily newspaper. Such procedure violates the fundamental principles govern- 


126 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


ing the delegation of responsiblity and authority by which effective operating results 
can he obtained. The effective execution of any determined program of operation 
by one who is accountable and responsible for its execution can be obtained only by 
delegating to that one, authority to control subordinate personnel and methods of 
operation. 

Engineers of districts and maintenance divisions are maintained to carry on the 
physical operations of the Department. The chief maintenance engineer and the di¬ 
vision engineers, with few exceptions, are technically trained and thoroughly com¬ 
petent. Their control, however, over work for which they are responsible Is limited 
by conditions already mentioned. No detailed analysis of the work of all depart¬ 
ments is possible in this survey. In general, department heads are technically trained, 
experienced, and competent, but the conditions under which they work would render 
it unjust‘to hold them fully accountable for results of operations. The salary of the 
chief engineer is inadequate. Salary rates as now determined do not insure equal 
advantages for all employees en'gaged in work of similar responsbillty. Steps should 
be taken to insure compensation within the various classifications, based on personal 
ability, character and responsibility of work and length of service. 

The uncertainties accompanying the tenure of office in the Highway Department 
have already been mentioned. The length of continued service of administrative heads 
and other highway employees is shown below. 


Position 

Monthly 

Salary 

Period of 

Continuous Service 

In Present Position Prior 

Years Months Years 

Service 

Months 

Chief Engineer 

$400 

3 

6 

4 

1 

Federal Aid Engineer 

300 

6 

6 

3 

a 

Chief Draftsman 

300 

15 

0 

1 

0 

Maintenance Engineer 

300 

3 

5 

8 

0 

Construction Engineer 

300 

3 

2 

6 

10 

Bridge Engineer 

300 

5 

4 

9 

8 

Material and Tests Engineer 

300 

2 

5 

8 

6 

Design Engineer 

300 

3 

5 

6 

0 

Right of Way Engineer 

220 

1 

6 

4 

1 

Division Engineer Div. No. 1 

300 

0 

1 

0 

0 

Division Engineer Div. No. 2 

300 

1 

5 

6 

5 

Division Engineer Div. No. 3 

300 

1 

8 

9 

9 

Division Engineer Div. No. 4 

300 

1 

6 

1 

11 

Division Engineer Div. No. 5 

300 

2 

11 

6 

8 

Division Engineer Div. No. 6 

300 

4 

8 

8 

6 


For comparison, the following table is given showing the length of continued service 
of administrative heads of the Iowa State Highway Department in July, 1933. 


Position 


Period of Continuous 

Service 

Chief Engineer 


21 

years 

6 

months 

Administration Engineer 


5 

8 

99 

Construction Engineer 


18 




Engineer of Road Design 
Maintenance Engineer 

Engineer Materials and Tests 


20 

18 

. __ _ _ 15 

>> 

91 

10 

months 


The figures given in Table I constitute an estimate based on the actual record of 
647 monthly salaried employees. These employees represent the majority of those 
still on the active payroll of the Commission, who were also on the payroll during the 
month of June, 1934. Records of all employees are not available prior to September 
1, 1930. 

TABLE I 

DISTRIBUTION OF MONTHLY SALARIED EMPLOYEES OF OKLAHOMA STATE HIGHWAY 



COMMISSION 

BY TYPE 

OF POSITION AND LENGTH 

OF SERVICE 



Years of 

Continuous 

Service 

Engin¬ 

eering 

Office 

Account¬ 
ing De¬ 
partment 

Construc¬ 
tion De¬ 
partment 

Maintenance 
Division, Ad¬ 
ministration, 
Equipment, etc. 

Other Gen¬ 
eral and 
Administra¬ 
tive Depts. 

Total 
All De¬ 
part¬ 
ments 

Per 

Cent of 
Total 

Under 1 

2 

_ 

64 

4 

13 

83 

12.83 

1 - 4 

15 

18 

205 

31 

107 

376 

58.12 

4 and over 

20 

6 

88 

14 

60 

188 

29.05 

Total 

37 

24 

357 

49 

180 

647 

100.00 



















ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


127 


These percentage figures indicate that the terms of service of employees fluctuate 
in full sympathy with changes of administration. 

In the last two years a varying demand in connection jsvith operations of the Depart¬ 
ment in handling federal emergency highway funds and highway work relief funds has 
perhaps justified retaining on the payroll through slack intervals and for a short period, 
a small surplus of employees in a few classifications. It does not appear, however, 
that the highway personnel has been adjusted either to seasonal or annual fluctuations 
in the volume of work or in conformity with variation^ in the operating budget, as 
will appear in Table II below. 


TABLE II 

EMPLOYEES ON PAYROLL FOR THE MONTH OF JUNE 
1931, 1932, 1933, and 1934 


Year 

Number Regular 
Employees on a 
Monthly Salary 

Number Dally Wage 
and Temporary Em¬ 
ployees 

Total 

Total Operating 
Budget 

1931 

754 

Not available 


$14,777,159.14 

1932 

586 

Not available 

__ 

12,251,281.33 

1933 

666 

1075 

1741 

13,568,299.50 

1934 

988 

5586 

6574 

15,577,233.37 


The continuous service records of maintenance superintendents present perhaps 
more significant figures than are to be found in any other classification. Of a total of 
29 superintendents of maintenance divisions, 10 have served lesls than one year, and 
of that 10, 8 have served less than three months; 4 have served less than two years; 
12 have served less than 4 year§; and only 2 have served more than 4 years, the longest 
term of service being 7 years and 8 months. A significant fact is that only 3 of the 
superintendents now op the roll have previously served the State Highway Department 
in a salaried position. The work of a maintenance superintendent is of a character 
that requires experience and training if efficient performance of such duties is to be 
expected. 

An analysis of the term of service of resident engineers shows an average term of 
service of' three years. The record shows a term of service of division engineers which 
will average slightly over two years. This perhaps will account for the fact that resi¬ 
dent engineers have in some instances refused promotion to the position of division en 
gineers oni the ground that, for some unexplained reason, there is more security from 
political interference in the resident engineer’s job. 

OPERATING RESULTS 

Tiie test of the effectiveness of a State Highway Department will be found in a 
comparison of the objectives required, the physical results obtained and the money 
expended. A state road system is designed to accomplish the following results: 

1. To connect all cities and towns that are of sufficient importance to attract 
other than local traffic. 

2. To form logical continuations of the state roads of adjoining states. 

3. To irielude roads that are necessary links in routs for long distance travel. 

4. To give access to regions devoted to recreation and to places of natural beauty. 

5. To supplement the railroads as arteries of commerce. 

6. To serve military purposes. 

7. To anticipate and direct movements tending toward relocation and decentraliza¬ 
tion of industry. 

A primary road system should meet these objectives. It must be designed, located, 
and constructed in accordance with sound engineering principles, and with a view to 
safety of transportation, economy in maintenance, and conservation of capital investment. 

With the beginning of the modern', road program in Oklahoma there was In the 
roads existing little value of a permanent character. The requirements of location, 
alignment, drainage, and grading! to permanent grade had to be met in all projects. The 
rapid growth in .population and in the use of motor vehicles brought about in every 
community a necessity for roads, accompanied by urgent demand for road construction. 





128 


ORGANIZATION AM) ADMINISTRATION OF OKLAHOMA 


All these problems had to be met by a new organization, hastily thrown together to 
accomplish a task in road construction of a magnitude never before experienced. 

It was inevitable that in the earlier period of construction mistakes were made. 
The increase that has taken in the speed of the motor vehicle was not fully anticipated, 
with the result that many of the earlier built roads of the state system were improperly 
located and were defective as to grade and alignment, with design ana type of con¬ 
struction un,suited to the traffic requirements. Bridges were built too narrow for 
safety with modern traffic, the economic results of which are now reflected in recon¬ 
struction, betterments, and maintenance expenditures. 

Work Accomplished. The figures below shew the state road system mileage classi¬ 
fied by types for maintenance purposes. Oklahoma has surfaced 27. O' per cent of its 
total mileage with the standard type of pavement. During the last three years, the 
Highway Commission has increased the mileage of standard pavement by 035.39 miles. 
The mileage of second class pavement has been decreased 7.84 miles. 



1932 

1933 

June 

30, 1934 

Ho.id ‘ 
Mileage 

ver Cent 

of Total 

‘<Gia 

Mileage 

e :> Ce u 

of Total 

«' -‘‘HI 

Mileage 

• Oenc 

of Total 

Unimproved earth 

2,173.2 

30.35 

1,306.3 

17.61 

1,300.63 

17.47 

Improved earth 

542.5 

7.58 

713.3 

9.61 

718.77 

9.65 

Gravel 

2,542.9 

35.52 

3,366.7 

45.37 

2,999.70 

40.28 

Class 2 pavement 1 

362.4 

5.07 

358.4 

4.83 

354 56 

4.76 

Standard pavement - 

1,537.7 

21.4S 

1,675.4 

22.58 

2,073.09 

27.84 

Total 

7,158.7 

100.0 

7,420,1 

100.0 

7,446.75 

100.0 


A comparative statement of revenue and disbursements for the fiscal years beginning 
June 30, 1930 to June 30, 1934 follows: 

1930-31 1931-32 1932-'33 1933-34 

Revenue $18,366,619.28 $13,411,941.54 $12,679,551.26 $9,276,715.30 

Oisbune.nrents 19,062,886.28 11,872,257.40 15,930,363.34 9,304,641.78 

Location and Type of Improvements. Since 1924. 2.917 miles of road have been 
added to the primary system, some mileage originally incorporated in ibis state sys¬ 
tem has transferred back to the county or township, while other mileage has from 
time to- time been added to the primary system. Considerable mileage constructed 
by counties from the proceeds of county bond issues was later taken over and added 
to the primary system. 

The variations between counties! in the stage of state road development is illustrated 
in the following table, which shows as of 1934 the frequency distribution of counties, 
according to the various percentages which are unimproved, improved earth, standard 
pavement, and second class pavement. 


Percentage 

Unimproved 

Improved 

Second Class 

Gravel 

Standard 

Interval 

Earth 

Earth 

Pavement 



None 

36 

49 

54 

10 

19 

Under 10 

9 

8 

9 

9 

13 

10-20 

s 

8 

9 

8 

9 

20 - 30 

8 

4 

3 

6 

6 

30 - 40 


1 

i 

7 

6 

*0 - 50 

7 

5 

i 

6 

5 

50 - 00 

4 

1 

0 

8 

4 

no - un 

2 

1 

0 

23 

15 

Total 

77 

77 

77 

77 

77 

With a few 

exceptions, every 

county seat 

in the state 

can be 

reached without 


leaving a surfaced highway, although in a few instances a roundabout line of travel 
is necessary. All population centers and all interstate routes are connected by state 
highways: but at the present time all interstate routes are broken by unpaved gaps; on 
three of these roads, the gaps are so small that they may be considered as practically 
completed. The remaining seven important interstate routes are far from complete 
and much remains to be done on important intrastate routes. 


’Class 2 pavement—bituminous surface on gravel base. 

’Standard pavement—brick, concrete, asphalt on concrete base, or equivalent types. 
























ORGANIZATION AND ADMINISTRATION OF OKLAHOMA • 


129 


State road development in some sections is to some extent unbalanced. This con¬ 
dition has no doubt been influenced to some extent by county bond issues, the pro¬ 
ceeds of which were necessarily expended in the county voting the bonds. However, 
the results of pressure brought to bear upon the Highway Commission by local, regional, 
and political interests are also evident. Apparently through such efforts many miles 
of roads have been incorporated into the state highway system that should properly 
be classified as county roads, while on the other hand, some of the most important 
interstate routes have been neglected. Route 69, an; interstate route that would logically 
carry motor traffic between Kansas City and St. Louis, and Dallas, Fort Worth, and 
other Texas points, is far behind in point of completion compared with other routes 
of lesser importance. 

Another interstate route leading northwest from the center of the state through 
the Panhandle and direct to Colorado and Rocky Mountain points, has received little 
recognition beyond giving it the number 270. This road, when improved, will not 
only serve interstate traffic, but will greatly facilitate travel between the Panhandle 
and the northwestern section of Oklahoma, and the state capital. 

The desirability of eliminating extraneous considerations, wholly unrelated and 
inimical economical and orderly progress, is obvious. The Highway Commission should 
be permitted to work unhampered in its efforts to develop and construct an integrated 
state road system. One of the prime essentials of highway administration is the 
development of a coherent planj and policy. In the present state of development of 
the state system, sound policy (would have dictated a more rigid adherence to the 
basic needs of the primary system. 

Economy. It has already been indicated that any conclusion that the Oklahoma 
state road costs and administration have been conducted on a scientific and economical 
basis, through all of the kaleidoscopic changes of administration and personnel, would 
have inadequate foundation. As example the following cases are mentioned: 29 main¬ 

tenance superintendents are employed in the six engineering divisions; the total mileage 
of state highways is 7,446, making an average of approximately 256 miles for each 
superintendent. It is estimated that 20 superintendents is the maximum that should 
be required for this) mileage, distributed as follows: for Engineer District No. 1, 
four maintenance superintendents; District No. 2, two; District No. 3, iour; District 
No. 4, three; District No. 5, four; and for District No. 6, three. If such a distribution 
were in effect, the cost and expense of operating nine automobiles and the salaries of 
nine maintenance 1 superintendents would be eliminated. All quantitative data obtainable 
indicate that engineering costs are unusually high. It again sieems necessary to state 
that no reflection is intended on the various heads of engineering departments or di¬ 
visions. They are not given sufficient authority or control over operations or sub¬ 
ordinates to justify their being held to accountability. 

Our attention has been directed to the fact that division engineers find it neces¬ 
sary to re-survey and re-figure excavation and earthwork quantities after a contract 
has been awarded. It is suggested that additional engineering costs could be avoided 
by a more careful preparation of construction plans. These plans should reflect the 
earthwork quantities with sufficient accuracy to avoid the necessity of re-figuring 
the mass diagram governing the movements of excavation after the contract is let. 
Either the original survey notes or the plans prepared for them have been too hastily 
made. The following seven construction projects now under construction or recently 
completed are shown with the engineer personnel actually employed on the respective 
projects together with an estimate of the number that would be actually required. 


Number Actually 
Employed 


Number Actually 
Required 


1 Resident Eng. 

2 Inspectors 

2 Rodmen 

3 Chainmen 

1 Resident Eng. 

4 Inspectors 


NRM 293-J — On Hoy Street in the city of 
Buffalo, Harper County, 0.655 miles R. C. 
Paving. Contract estimate $36,522.S4 

NRH 293-H—East of Charleston across Cim¬ 
arron River, 3.372 miles of Grade and Drain- 


1 Resident Eng. 

2 Inspectors 
1 Rodman 

1 Chainman 

1 Resident Eng. 

2 Inspectors 




130 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


Number Actually 
Employed 

1 Rodman 
1 Instrument man 

3 Chainmen 

1 Resident Eng. 

4 Chainmen 
3 Rodmen 

1 Instrument man 

1 Resident Eng. 

1 Inspector 
3 Chainmen 


1 Resident Eng. 

1 Instrument man 
3 Inspectors 
3 Chainmen 


1 Resident Eng. 

4 Instrument men 

5 Chainmen 


1 Resident Eng. 

1 Instrument man 

3 Inspectors 
1 Rodman 

4 Chainmen 


age and One Bridge. Contract Estimate $148,- 
147.97, in Harper and Woods Counties 

SAP 792—On S. H. 35 S. E. of Woodward 1 
Bridge and Culverts, Woodward County Con¬ 
tract Estimate $9,869.09. 


NRH 305-C—Approximately 1 mile west of 
Woodward, 0.062 miles, Grade Drainage and 
Surfacing with Underpass of A. T. and S. F. 
Ry., Woodward County 

NR 2-A—-Approximately 2.5 miles west oi: 
Medicine Park 0.132 miles of Grade and Drain¬ 
age and One Bridge, Comanche County (Note 
—Engineering costs in this project amounted 
to $2,500 or approximately 59 per cent of the 
contract estimate) 

NRM 8-A—On U. S. 66 in the city of Miami, 
1.315 miles of grade and drainage and paving 
and one bridge over the Neosho River, Ottawa 
County. Contract estimate $148,297.82 1 

A 

NRM 67-C-R. C. Paving in Tishomingo, 
0.108 miles on S. H. 22. Contract estimate 
$17,302.23 


Number Actually 
Required 

1 Rodman 
1 Instrument man 
1 Cbainman 

1 Resident Eng. 

1 Chainman 
1 Rodman 
1 Instrument man 

1 Resident Eng. 

1 Inspector 
1 Chainman 


1 Resident Eng. 

1 Instrument man 
1 Inspector 
1 Chainman 


1 Resident Eng. 

1 Instrument man 

1 Chainman 

2 Inspectors 

1 Resident Eng. 

1 Instrument man 

2 Inspectors 
1 Rodman 

1 Chainman 


Construction Costs. It is not considered feasible nor within the limits of this 
survey to attempt a detailed analysis of the three phases of highway costs, original 
cost, durability or economic cost, and cost of upkeep during economic life, for the 
reason that the methods employed in keeping accounting records would render any 
such attempt difficult and the resulting conclusions based thereon) would be unreliable. 
The chaotic condition of the earlier records would render any such attempt imprac¬ 
ticable. It is also realized that any analysis for the purpose of interstate comparison 
erf road construction costs isi of little value because of variation in standards of con¬ 
struction, as well as topographical and labor conditions and cost of material. 

Design. In addition to the management and economic phases of highway engineering, 
design has come to constitute an increasingly important and exacting feature of the 
development of modern highway systems. Within the last few years, the development 
of the automobile hasl increased the speed of traffic from 35 to 40 miles per hour to 
60 and up. Freight and passenger carrying vehicles have kept pace with the private 
car; and, with the increase in speed, has come greatly increased construction cost due 
to the need of wider pavements, wider bridges, better alignment, increased range of 
vision, elimination of short curves, and uniform smoothness of pavement surface. 
Maintenance engineers have been faced with increased maintenance costs, as well as 
the serious task of proper maintenance of lower cost types of roads. 

The designs noKv employed by the State Highway Department in the construction 
of standard pavements are in line with modern method. More consideration is being 

1 A letter from the senior highway engineer of the United States Bureau of Public Roads, 
under date of March 6, 1935, to the Oklahoma State Highway Engineer, calls attention to 
the excessive engineering personnel on project U. S. P. W. NRM-8-A, in which he states 
that a resident engineer and nine men are rather a large party for a project of this size, 
and calling attention to the fact that this same engineer, several years ago, took care of the 
bridge south of Terral with a party one-half as large as the one now working on No. 8. 






ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


131 


given to fitting the type of pavement to the traffic needs of the highway, However, this 
has not always been true in the past. There are many instances where design has 
been influenced by considerations other than economy and traffic needs. The types 
now adopted for second and third class pavements, various types of bituminous con¬ 
struction, and the types of gravel constructions flow used, and the policy followed in 
connection therewith are fairly in line with sound principles, although the pressing 
demand for increased mileage of improved roads is responsible for the construction 
of gravel and low cost bituminous surfaces in pllaces where better types of roads 
should have been built. It cannot be overlooked that interested contractors, over- 
enthusiastic material salesmen, and ill-advised pressure exerted on highway officials 
have contributed not a little to waste and mistakes in Oklahoma’s road building, and 
have resulted in construction that is low cost in name only. It cannot be contended 
that, the problem of gravel and bituminous construction in' the highway system has 
been fully solved; but the location, type, and distribution of roads in a state system 
of highways should be governed by technical decisions which few laymen are com¬ 
petent to make. Decisions of this character should not be made without consultation 
with the approval of the capable engineering opinion, which is available in the 
engineering staff of the State Highway Department and which exists for that purpose. 


Maintenance. The existing method of segregating and recording maintenance costs 
in the Highway Department does not enable such data to be kept in full conformity 
with the generally accepted definitions of general maintenance. Betterments, additions, 
and reconstructions are frequently included in maintenance, with the occasional ab¬ 
sorption of certain amounts of new construction. The administrative cost of the di¬ 
vision. engineer’s office is charged to maintenance, Liberal use is made of pro-rations; 
and it is noted that the accounting department carries a special improvement project 
account, to which it charges expenditures, some of which properly belong to mainte¬ 
nance. These observations are not intended in any way hs reflections on the methods 
employed in maintenance operation or of the work being accomplished by the mainte¬ 
nance department. The methods, work, and progress of the engineering staff indicate 
competency in the conduct of its work. The appointment of maintenance superintend¬ 
ents and the selection of labor is not within the control of the engineering department. 
Frequently because of inefficiency of a maintenance superintendent, the load of main¬ 
tenance Work falls on the resident and division engineer. 

The average maintenance cost per mile for the various types of primary road sur¬ 
faces and the record of maintenance disbursements over a period of three and five 
years respectively are shown in the following table: 



Unimproved 

Improved 


Class 

2 Standard 


Year 

Earth 

Earth 

Gravel 

Pavement 1 Pavement : 

! State 

1932 

373.18 

430.85 

514.89 

485 

.54 404.26 

433.61 

1933 

262.93 

289.01 

356.14 

354.65 245.10 

298.19 

1934 

329.39 

388.25 

523.91 

513.09 285.70 

415.68 

Average 

321.83 

369.37 

464.98 

451.09 311.69 

382.49 

Year 

Administration 

Betterments 

Reconstruction 

Maintenance 

Totals 

1930 

136,967.96 

None 

963,297.67 

2,769,312.96 

3,869,578.59 

1931 

155,525.48 

None 

156, 

708.82 

2,172,636.38 

2,484,870.68 

1932 

196,579.72 

822,794.45 

206,480.14 

2,269,619.63 

3,405.473.94 

1933 

86.519.22 

574,435.40 

214,453.98 

1,753,470.05 

2,628,878.65 

1934 

84,366.23 

1,229,506.74 

734,226.63 

2,119,816.75 

4,167,916.35 

In 

the examination of the above 

table the 

significant fact stands, cut 

that the 


average cost per mile for maintenance in 1932 was $135.42 per mile more than the 
maintenance cost in 1933. It will also be noted that the maintenance cost jumps again 
from $29S.19 per mile in 1933 to $415.68 per mile in 1934, or $117.49 per mile more than 
in 1933. No explanation of this variation of maintenance costs has bee npresented. 
It may, however, be noted that in 1933 there was no state or national election. 

It is evident, however, that maintenance costs in the period from 1930 to 1934 in¬ 
clusive have not moved in a rational or normal sequence. In the years 1930-32 and 
1934 either an unnecessary amount was expended for maintenance or in 1931 and 1933 
the expenditure was below normal requirements. Obviously, maintenance disburse- 


Riituminous surface on gravel base. 

*Brick, concrete, asphalt on concrete base, or equivalent types 









132 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


merits should increase at a more or less regular rate over a period of years. The 
following table shows the average annual cost of maintenance by class intervals over* 
a three year period 1D32, 1933, and 1934: 


Number of Counties _ 

Improved Paved, Gravel 

Barth Surface Surface 


$ 50 to $100 
100 to 150 
150 to 200 
200 to 250 
250 to 300 
300 to 350 
350 to 400 
400 to 450 
450 to 500 
500 to 550 
550 to 600 
600 to 650 

The light gravel road type of construction used in the Oklahoma state highway 
system comprises 2,999 miles, or approximately 40 per cent of the total state system. 
The highway maintenance! cost per mile indicated ip the above table referring to gravel 
indicates the lack of economy in this type of construction. It is of course true that 
the funds available have frequently rendered it necessary to use this type of construc¬ 
tion on roads where a more substantial surfacing would be indicated. Economy and 
preservation of the capital already invested would suggest the advisability of a better 
type of surfacing for those portions of these roads where traffic conditions are too 
heavy for the light gravel type, even at the expense of delaying new construction. It 
has apparently been the policy in the past to allot the minimum amount of funds to 
maintenance, in order that a better showing could be made in new construction. The 
stage has apparently been reached where, in order to preserve the road system and 
at the same time carry on new construction, additional sources of revenue will have 
to be obtained. 

Tables III and IV show all direct maintenance charges for the years 3932, 1933, 
and 1934, and all direct charges plus Indirect apportionments for the same period, to¬ 
gether with distribution of expenditures and percentage to total expenditures. 

TABLE TII 

OKLAHOMA STATE HIGHWAY COMMISSION, MAINTENANCE COST 
FOR STATE (ALL DIRECT MAINTENANCE CHARGES) FOR THE 
YEARS 1932, 1933, and 1934 


Per Cent 



1932 

1933 

1934 

Total 

of Total 

Salaries and Wages 

Material and Supplies 

Equipment Supnlies and Expenses 
Miscellaneous Expense 

Traveling Expense 

$1,913,902.72 
144,690.02 
209,865.88 
4,557 43 
5.603.58 

$1,414,602.16 

99,619.74 

224,653.98 

8.880.94 

5,713.23 

$1,629,881.54 

153.657.09 

320,755.37 

10,369.34 

5,153.41 

$4,958,386.42 

397,966.85 

746,275.23 

23,807.71 

16,470.22 

80.71 

6.48 

12.15 

.39 

.27 

Total 

2,269.619.63 

1,753,470.05 

2,119,816.75 

6,142,906 43 

100.00 

Average mileage for period 
Average cost per mile 

6,961.536 

326.02 

7.204.362 

243.39 

7,428.403 

285.37 




1 

3 3 

1 10 2 

1 10 3 

5 12 9 

3 5 15 

1 10 

2 4 

1 3 

2 


2 


Class Interval 
of Maintenance 
Cost Per Mile 


TABLE IY 

COMPLETE MAINTENANCE COST FOR STATE (ALL DIRECT CHARGES PLUS INDIRECT 
APPORTIONMENTS) FOR THE YEARS 1932, 1933, AND 1934 


1932 1933 1934 


Classified maintenance _$2,269,619.63 

Equipment _ 513,724 24 

General maintenance _ 8,299.52 

Administration headquarters _ 15,446.45 

Special improvements _ 206,477.04 


$1,753,470.05 

139,284.51 

6,564.15 

14,460.14 

214,453.98 


Total 


3,018,566.88 2,148,232.83 


$2,119,816.75 

216.224.59 

3,785.71 

14,490.75 

733,497.48 


3,087,815.28 


Average mileage for period _ 6,961.536 7,204.362 7,428.403 

Average cost per mile _ ___ 433.61 298.19 415.68 


Highway Use. Oklahoma’s state road system is now being uniformly designed, 
constructed, and marked according to principles ‘which favor maximum utilization and 























ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


133 


safety. The engineering staff of the Department is fully cognizant of the task before 
them in the matter of modernizing earlier construction, and are applying scientific 
principles of construction to all road development. All state roads are now being paved 
not less than 20 feet in width; all other physical factors, grades, curves, maintenance, 
and highway markings are favorable to safety and use; and construction is such as 
to realize the full economic value of motor vehicle transportation. The gross and wheel 
loads which may be carried on Oklahoma highways are limited by statutory provision. 
These limitations are well within the carrying capacity of the standard pavement but! 
there is at the present time no provision for enforcement and consequently no enforce¬ 
ment. 

The opening of a new oil field inVariably brings about serious damage to all paved 
roads in the region where such development is being carried on and results in heavy 
outlays for reconstruction and maintenance, adding another imponderable factor in 
any evaluation of maintenance operation. 

Material Survey. No comprehensive survey of local road material has been made 
in the state of Oklahoma. The work of locating and testing materials has been carried 
out in connection with the larger supplies in isolated parts of the state; but no at¬ 
tempt has been made to assemble this information or add to it. It is obvious that 
proper planning of the highway system cannot be carried out unless available sources 
of supplies are known and analyzed. A material survey would enable the state to op¬ 
tion quantities of materials in advance of construction, thus preventing private inter¬ 
ests from securing control of material sources to the financial disadvantage of the 
state. Instances have arisen in the past where contractors, knowing the location of com¬ 
ing construction work, have optioned available materials, thereby precluding competi¬ 
tive bidding and enbling these contractors to obtain an excessive price for the work. 

A survey of local materials available for bridges and highway construction in Oklahoma 
should be made. 

REVENUES AND ACCOUNTING 

State funds for state highway construction in Oklahoma come almost exclusively 
from motor vehicle fees and the gasoline tax. To these are added federal aid payments, 
which vary according to congressional appropriation. An additional and not insignificant 
source of highway revenues has come to the state in the last two years in the form 
of federal emergency highway funds and federal emergency relief projects, which have 
added appreciably to the work done not only on state highways, but on county and 
township roads. 

The state has never issued bonds for road construction; but a majority of counties 
and some townships, mostly prior to the establishment of the gasoline tax, voted bonds 
for highway purposes. Part of the proceeds of these bonds were used by the town¬ 
ships and counties in road construction. Large amounts, however, were turned over 
to the State Highway Department and were expended by the Highway Commission in 
connection with federal aid in building roads in the respective counties. These bonds 
are now being liquidated in part by the counties’ share of motor vehicle and gasoline 
taxes. A levy of % of a cent ad valorem tax was authorized by the legislature in 1915. 
This was returned to the counties for road purposes. Frequently funds have been al¬ 
lotted by various counties) to the State Highway Commission, to be applied on state 
highways in the respective counties. The % cent ad valorem tax was abolished in 1933. 

Tables V and VI show collections for the years 1931 to 1934 inclusive and distribu¬ 
tion for the year 1934 with percentage of total for each source. 

TABLE v 


COLLECTIONS 

FOR THE YEARS 

1931, 1932, 1933 

AND 1934 



1931 

1932 

1933 

1934 

Motor Carrier Tax .. -- 

Transfer from county deposits 

Federal aid collections 

Miscellaneous - - _ 

Gasoline tax 

Motor vehicle license - — 

173,223.20 
911,234.73 
. 4,908,947.25 

79,924.24 

- 7,983,695.95 

- 2,519,543.14 

8,530.61 

188,742.84 

245,116.61 

861,438.87 

24,636.40 

7,547,902.96 

2,102,388.93 

15,768.19 

385,637.27 

1,136,524.20 

4,460,542.28 

7,190.87 

5.136,505.66 

1,325,251.65 

4,604.60 

579,696.60 

59,505.00 

7,887,853.54 

8,663.19 

4,977,089.19 

1,408,836.52 




Total 

. 16,645,099.12 

10,985,994.80 

11,456,256.53 

14,921,644.12 














134 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


TABLE VI 

COLLECTIONS FOR THE YEAR 1934-SHOWING APPORTIONMENT WITH PER CENT TO TOTAL 1 


Oklahoma Tax County S. H. C. and M. 

Commission Apportionment Apportionment General Revenue 


Total 

Auto Tax Collections Amount 

Per 

Cent Amount 

Per 

Cent Amount 

Per 

Cent Amount 

Per 

Cent 

Gasoline _ 10,804,134.20 219,747.39 

Motor vehicle 

license _ 3,033,978.45 151,333.48 

Motor carrier tax 609,975.31 28,685.88 

2.03 2,690,857.59 

4.99 1,730,683.39 

4.70 

24.91 4,S44,401.73 

57.04 1,153,788.95 
579,696.60 

44.84 3,229,029.12 

38.03 

95.03 

29.88 

Total _ 14,443,088.02 399,766.75 

2.77 4,421,540.98 

30.60 6,577.887.28 

45.52 3,229,029.12 

22.35 


The tables show that, of the total collected from the users of highways in the 
state in 1934, less than half )was available to the State Highway Commission for con¬ 
struction and maintenance. Diversion of highway revenues to purposes other than high¬ 
ways by legislative act resulted in making only 45.52 per cent of the users tax avail¬ 
able for highway construction purposes, and reduced such revenues by approximately 
$4,000,000. 

Motor Vehicle License Fee. Forty per cent of all money received from vehicle 
licenses isj deposited in the state treasury and credited to the state highway construc¬ 
tion and maintenance fund, to be expended by the State Highway Commission upon 
the state road system. The remaining 60 per cent is sent to the county treasurers. 
From this amount, 15 per cent of all moneys received from vehicles or motor vehicles, 
whether in incorporated towns or cities, must be paid over by the county treasurer 
to the city treasurer to be credited to the street and alley fund. 

Gasoline Tax Levies. The gasoline tax levy now in force amounts to 4 cents on 
each gallon of gaspline. Three cents is to be deposited in the state treasury to the 
credit of the state highway construction and maintenance fund. One cenr is to be ap¬ 
portioned by the State Highway Commission to each county in the state in the ratio 
which the area and population of each county bear to the area and population of the 
state. No less than 5 per cent of the revenue derived by any county from the auto and 
gas taxes, in so far as may be necessary, must be used in payment of principal and 
interest of bonds) heretofore issued by any county for constructing hard surfaced roads. 
The State Highway Commission exercises no supervision over the expenditure of these 
allotted funds. 

In 1933 the legislature enacted a law providing that 40 per cent of the gasoline 
tax collected and required to be deposited to the credit of the state highway construc¬ 
tion and maintenance fund should be deposited in the state treasury to be used ex¬ 
clusively for the payment of the indebtedness of the state represented by outstanding 
interest bearing warrants, or any other securities authorized by law and based upon 
such warrants isstued in payment of obligation incurred prior to July 1, 1933 until such 
indebtedness shall have been paid. Thereafter such taxes are to be returned to the 
state highway fund. 

The legislature has further provided that in addition to the purposes for which 
the) gasoline excise tax and motor vehicle license tax are levied, collected, and deposited 
to the credit of the state highway construction and maintenance fund, said taxes shall 
hereafter also be levied and collected for the purpose of paying final judgment ren- ~ 
dered against the state of Oklahoma, based on suits authorized by the legislature aris- j 
ing out of improper construction of state highways. 

Questions of diversions and exemptions in connection with highway revenues can 
not be disregarded. The state is the sole agency for special automobile taxation. Its : 
state highway system, from the beginning, has been based exclusively on gasoline and 
motor vehicle taxation. No state bonds have been issued for highway purposes. It is ’ 
believed that the state system has now reached that stage in highway development 

’This table is compiled from reports submitted by the Oklahoma Tax Commission and is 
based upon the gross collections for the year only. These figures will not compare with 
those m Table A for 1934, for the reason that balances at the beginning and end of the 
year are not included. 

























ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 135 

where, with clear thinking, careful planning, and sound, economical administration, a 
definite policy of financing future highway improvements from current motor vehicle 
users revenues, might be adopted. It must become evident to those responsible for the 
fiscal affairs of the state that a continuation of the diversions and exemptions, as now 
authorized by law, 'Will render new construction impossible, and even jeopardize the 
preservation of the capital already invested in highways. The question may well be 
asked whether the present income of the Department is adequate to meet the require- 
uients ox administration, maintenance, betterments, and necessary reconstruction. Any 
e orts of the Commission to match from present revenues federal aid allotments to an 
appreciable extent must result in an increase of the deficit already existing, or in a 
failure to preserve the capital investment by neglect of maintenance. 

Financial and Operating Policies. The accompanying charts graphically Illustrate 
the conditions of Oklahoma’s Highway Department finances. Chart A has been com¬ 
piled from data furnished by the State Highway Accounting Division and checked with¬ 
in reasonable limits against the State Treasurer’s records. This chart reflects little 
vaiiation] in the several sources of state revenue for roads ‘with the exception of fed- 
eral funds in the years 1933 and 1934. Upon this is! based the anticipated revenues for 
1935 as indicated in Chart B. The decrease of approximately $4,000,000 in state in¬ 
come fo-r highway use from the year 1932 to 1934 is occasioned by diversion to pur¬ 
poses other than state highway construction and maintenance. 

It will also be noted that federal aid apportionments have increased greatly from 
1932 to 1934; and it is anticipated that direct federal grants to< the state for 1935 will 
be increased considerably over those for 1934. The requirement that the state supply 
the funds for right-of-way engineering and administration, etc. in the expenditure of 
such federal grants will render necessary a larger disbursement of state funds in this 
connection in 1935 than was required in 1934. 

Chart B shows a build-up of the total expenditures in individual columns for the 
years 1930 to 1934 inclusive, with an anticipated set-up for 1935. Data for this chart 
are from the same sources as those shown in Chart A. 

The total of receipts 1 is indicated by a solid horizontal line for the various years, 

the difference between the build-up in the individual column and in the horizontal 

line whi'ch indicates the receipts for each year show the extent to which the State 
Highway Commission s expenditures have either overrun or underrun Its receipts. For 
the year 1933 the deficit amounted to approximately $4,000,000; and for the year 1934 

the deficit appears to be $2,274,727. The column for the year 1935 is based entirely 

upon anticipated income and estimated fixed expenditures. The anticipated revenues for 
1935 estimated at $7, r50,000 are not believed sufficient to absorb the deficit, match 
federal aid, and cover normal administration costs of the State Highway Department. 

The total of $2,94 <,521, which represents the regular federal aid apportioned to 
the state for 1935, has not been matched by the state with the necessary amount of 
$2,661,462. The present legislature has under consideration an act to provide for the 
apportionment of funds for that purpose. If these funds are not secured from sources 
other than those which constitute the anticipated income of the State Highway De¬ 
partment, they must then be taken from the highway income or federal aid forfeited. 
The obvious alternatives are; (1) to halt all plans for any substantial new additions 
to> the state system and devote the present income to preservation of work done, (2) 
provide' additional funds by bond issue or ad valorem taxation, or (3) restore the gas¬ 
oline tax to the purpose for which it was established, to place the burden on higb- 
iway costs asi far as possible upon the user of the highways. 

No definite plans or estimate of cost for future operations seem to be prepared; 
and information necessary for the preparation of such plans and estimates has not 
been collected. 

Sound business principles would direct the preservation of the capital investment 
The present condition of the plant would indicate the advisability of an inventory 
and an estimate of the financial needs for maintenance, betterments, reconstruction, 
and additions necessary. 

Highway Accounting. In reviewing the accounting and reporting system of the 


Actual 

Expenditures 


136 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 



1930 

LEGEND 



GASOLINE TAX 
AUTOMOBILE TAX 
MOTOR CARRIER TAX 
COUNTY FUNDS 
MISCELLANEOUS 
FEDERAL FUNDS 





TOTAL FUNDS RECEIVED 

BY 

OKLAHOMA STATE HIGHWAY DEPARTMENT 
FOR YEARS 1930 TO 1934 INCLUSIVE 
(EXPRESSED IN MILLIONS OF DOLLARS) 


CHART A 


Dtfieit 



















































ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


137 



1930 1931 

LEGEND 


ADMINISTRATION 

BETTERMENTS 

RE-CONSTRUCTION 

MAINTENANCE 

state const a all others 




21 —- 
20 — 
19 — 
18 — 
n — 
16 — 
15 — 
14 — 
18 — 



1932 



TOTAL EXPENDITURES 

&Y 

OKLAHOMA STATE HIGHWAY COMMISSION 

FOR YEARS 19SO TO 1934 INCLUSIVE 
(EXPRESSED IN MILLIONS of dollars) 


FEDERAL FUNDS 


CHART B 


Administration, Betterment^ Deficit I*-. A 

Reconstruction,Maintenance.. *2,274,727, [^"Anticipated Income 

- —tt: -* State Sources 

, Fixed Expenditures. 









































































138 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


Highway Department, it is* noted that the accounting system, while it collects the 
costs of the various operations, has primarily been constructed to produce budget 
data. The deficiency of the system is that it does not readily supply the management 
with the kind of information needed. This is, in part due to the fact that no proper 
fund distinction is made or recognition given in the books to the fact that fedeial 
emergency highway funds, federal aid 1 allotments, and county funds should be separately 
accounted for from ^tate moneys, with the result that it isi most difficult to determine 
the conditions of the separate funds used by the High}way Commission in financing its 
work. This survey has attempted to obtain certain financial and cost data, and from 
the delay and the long time required to prepare the information it appears that the 
bookkeeping system as now operated does not readily supply the information needed 
by the management, or that the method involved in compiling the information is un¬ 
duly cumbersome. The reports of the Department as now prepared seem more vol¬ 
uminous than ndcessary; and the balance sheets submitted during the survey were 
of such a nature that the extent to which individual sources of revenue wqre affected 
by different obligations could not be readily ascertained. 

Appropriation of these moneys is left to the Highway Commission. The present 
'highway, budget is not, however, prepared on an annual basis. If the work of the 
Commission were budgeted on an annual basis, the Commission would have a possible 
measure of relief from the embarrassment of sometimes being forced into the letting 
of a project of lesser importance because of political or sectional pressure. Aside 
from this, annual budgeting is basically economical. The engineers could plan their 
work more systematically, more economically, and more efficiently if they could plan 
a year’s work 'in advance. Effective and efficient work is not possible where the au¬ 
thorization of work is based on ,ai month to month policy. Without a system of ac- 
ccmnting and reporting by which full and accurate information may be obtained regard¬ 
ing; the operation and financial condition of the Highway Department, it is impossible 
for those directly in pharge to exercise proper control, or for those responsible for 
the formulation of its policies to perform intelligently their duties. 

Full, adequate, accurate, informing and understandable reports should be made 
annually, so that the general public can effectively fulfill its task of holding both its 
executive and legislative representatives to rigid responsibility. For example, the bi¬ 
annual report for 1932 gives average maintenance cost per mile for the first eleven 
months of 1932 at $287.17. Data supplied by the highway accounting department in 
1935 shows the complete maintenance cost per mile for 1932 to be $433.61. The figure 
stated in the biennial report appears to be incorrect. The newly appointed head of 
the accounting department is taking steps to reorganize the methods now employed 
so as> to produce a less involved and more informing system. 

Federal Aid. Federal aid roads comprise 6,001 miles of the 744,675 miles embraced 
In the Oklahoma primary system of highways. Table VII indicates the extent to 
which federal money has contributed to the roads of Oklahoma. 

TABLE VII 

FEDERAL FUNDS APPORTIONED TO OKLAHOMA UNDER FEDERAL ROAD 
ACT AND SUBSEQUENT LEGISLATION 


Fiscal Year 

Ending Federal Aid 


June 30, 1917 to June 30, 1927, inclusive - $16,059,787 

June 30, 1928 _ 1,751,891 

June 30, 1929 _ 1,749,066 

June 30, 1930 _ 1,748,857 

June 30. 1931 _ 1,751,015 

June 30, 1931 _ 1,167,343 

Oklahoma’s share of 1328 funds apportioned to Hawaii not obligated by June 30, 1930 - 7,838 

June 30, 1932 _ 2,922,569 

June 30, 1933 ---- 2,938,305 l 


Total _ 30,096,671 

Emergency advance funds, 1932 - 1,926,351 

Emergency construction highway advance, 1933 - 2,888,723 

Direct grant, 1934 NRH _— 4,608,399 


5385.270.20 deducted for reimbursement of emergency advance funds, making net appor¬ 
tionment $2,553,034.80. 



















ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


139 


Fiscal Year 

Ending Federal Aid 


Direct grant, 1934 NRM 
Direct grant, 1934 NRS 
Direct grant, 1935 NRH 
Direct grant, 1935 NRM 
Direct grant, 1935 NRS 


2,304,200 

2,304,199 

2,342,59® 

1,171,295 

1,171,295 


Total _-_— 18,717,052 

GRAND TOTAL __ 48,813,72s 1 


In addition to the benefits derived from the expenditure of such sum on the state’s 
highways, there are other benefits contributed by the United States Bureau of Public 
Roads that have perhaps been more far-reaching. The scientific methods employed, 
the standards required by the Bureau in highway finances and highway engineering 
are clearly reflected in improvements that have been brought about in state and local 
highway operations. There is, however, another side to this picture. While expendi¬ 
tures from appropriations for co-operative construction] of state roads are, or have 
been, contingent upon equal contributions by state or local agencies, there is evidence 
now of a radical departure from the established policy of federal aid on a cooperative 
basis. Essential local government work is now being done by men who- are paid by 
federal-state relief funds. Local government employees; have been discharged and re¬ 
employed with federal emergency relief funds. Throughout the state or Oklahoma 
county engineers have been taken off county payrolls and in many cases are now do¬ 
ing county work on federal pay, another illustration of the world-old truth that he 
Who is helped by' resources to which he has contributed nothing, quickly loses all de¬ 
sire to help himself. State and local authorities are fast learning the art of pan¬ 
handling the federal government. 

PROPOSED REORGANIZATION 

The experience of Oklahoma has not demonstrated that a single-headed depart¬ 
ment or a commission of three or five members has been superior in its capacity to 
maintain continuity of policy and planning or to defend the organization against the 
political aispirations of individuals and selfish interests. It is not the purpose of this 
survey to guarantee the efficiency of any type of organization. Efficiency in a state 
highway organization is not inherent in any type of organization ; and experience af¬ 
fords little evidence that a theoretically perfect plan necessarily produces in operation 
the best results. This survey finds nothing inherent in the structure of the commission 
form of organization that has' materially affected the results of its operations. The 
continuance of the commission form of organization is therefore recommended. There 
are, however - , other elements in connection with the commission itself upon which 
legislative action may be required. 

The Governor. The power to control the expenditure of a large portion of the 
state’s entire income is placed in the hands of the Highway Commission. In the appoint¬ 
ments of the Commission rests the power to place politically minded laymen in control 
over technically trained and professionally-minded engineers and the power to appoint 
employees whose operations cover every political unit cf the state. No central authority 
charged with interests so vital to! the taxpayers of the state and to the public in general 
should possess such powers Without adequate safeguards; and control against the po¬ 
liticalization of the organization, with its damaging physical and economical effects 
on operations. 

3 Apportionments from fiscal year ending June 30. 1917 to fiscal year ending June 30 
1931 were matched with approximately 50 per cent state funds. In addition to" above, ap¬ 
proximate apportionments have been made as follows: 


Federal land funds -$104,262.63 

Forest funds - 19,870.20 

1935 regular federal aid _ 


1935 state funds to match, but not yet appropriated_ 


$2,947,521 

2,661,462 



















140 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


The Governor is and should be held politically and morally responsible for the 
operations of the State Highway Commission, but his authority is so diffused and lim¬ 
ited by the provisions of the state highway act requiring that the appointment of the 
commissioners by the Governor be approved and confirmed by the Senate, that it is 
impossible for him to exercise control over its operations. The resultant dissemination 
ef authority and responsibility in effect eliminates effective administrative control and 
renders possible situations where conscientious department heads would be unable 
to resist successfully the operations of men whose sole purpose is personal or political 
gain. 

The Chief Engineer. A competent engineer should be protected from arbitrary re¬ 
moval. If lie is free to conduct his work, his efficiency or inefficiency can be readily 
determined. Dismissal should be based upon just cause. If there is one thing needed 
in a state highway organization it is a directing engineer free from all political con¬ 
trol and free to administer and control all the administrative and technical operations 
of the organization. 

The problems of highway administration are largely engineering, hence adminis¬ 
trative and executive authority should be centered in the office of the chief engineer. 
The construction and maintenance of a state highway system is a highly specialized 
business. The magnitude of it can be realized when it is recalled that the State High¬ 
way Department of Oklahoma has disbursed $72,541,461 in the last five years. No 
business of this character and magnitude, has ever, with outstanding success, been 
directly managed by a board or commission. The advisability of placing full authority 
and responsibility in the hands of one executive head seems clear. 

The proper functions' of a highway commission are to assist in formulating plans 
and policies essential to the orderly development of a co-ordinated highway system. 
The commission, should be made up of public spirited men of affairs who are willing 
to give their services, receiving a nominal per diem and their expenses. A commission 
of this character would contribute vision, experience, outlook, and representative de¬ 
liberation. It would assist in solving the broader problems of highway administration, 
highway development and financing, and in deciding on the policies to be followed.. 
It would perform/the additional a,nd invaluable function of serving as a buffer between 
the administrative head of the department and the ever present pressure of politics. 

The State Highway Commission should be appointed by the Governor and the requirement 
of approval or confirmation by the Senate should : be eliminated. 

The state engineer should be appointed by the Commission without term; his salary should 
be commensurate with the responsibility of his position; all administrative authority should 
be centered in him, and he should be removable from office only for cause after written 
notice of the charges preferred and an open hearing. 

The Commission should be reduced to three members, compensated on a per diem basis, 
with the term of office six years, one Commissioner to be appointed every two years. 


CHAPTER IX 

LOCAL ROAD ADMINISTRATION 

Roads and bridges in the United States have in the past been largely a local 
problem. The failure of small units to supply the technical skill required to' solve 
the problems of modern highway construction and maintenance is for the most part 
responsible for the present trend in secondary road administration. Counties are taking 
over the functions of townships. States have gradually expanded their authority over 
secondary roads until now some states have assumed control of all roads in the state; 
and federal supervision and authority seems destined to penetrate deeply into local 
highway administration. 

The fundamental question in secondary road administration is: What is the 
proper territorial units to formulate policies and administer operations? It is now 
certain that the township in this, as in other fields of administration, must bc( 
eliminated. In Oklahoma, the township has been abolished. The county and state 
highway organizations remain without substantial administrative relationships exist¬ 
ing between them. The state has produced a Avorkable agency, 'with ability to command 
the services of competent technical personnel; while the counties, other than a few 
with wealth sufficient to enable them to develop competent county highway organiza¬ 
tions, have not been able to produce results in any degree commensurate with the 
money that has been expended in the development of their roads. Both the state and 
the county agencies are weak because their roots are planted deep in political soil. 
The county alone, or the state alone, or the state and county together, must assume 
responsibilities for county roads. For the present, at least, the solution of county 
road administration^ lies in one of these three choices. 

Since the abolishment of townships in Oklahoma and the transfer of township 
functions to the county, county roads have been exclusively under the control of the 
board of county commissioners, with the exception of those roads incorporated in the, 
state highway system. 

Any proposal for state control of county roads must take into consideration the 
traditional and deeply seated feeling for local political control, with the additional 
emphasis that is placed upon it whenever the question of taxation is involved. The 
ultimate decision, however, will be based cn answers to two questions; First, is the 
county able to maintain a county road organization capable of ..carrying on modern 
road work economically; and, can the weakness of county organization, evident in our 
present political system, be corrected? 

COUNTY HIGHWAY ORGANIZATION 

The duty to construct, repair, and maintain the road and bridge system of the 
county is vested by law in the board of county commissioners. 

County Commissioners. The law provides that each county shall be divided by 
the board of coujnty commissioners into three compact districts, as equal in population 
as possible, numbered respectively one, two, and three, and one commissioner shall be 
elected from each district. 

Formulationl of plans for the development of all the roads of the county, except 
the roads embraced in the state system, rests exclusively in the hands of the county 
commissioners. 

All money raised for use on the county highways in each county or apportioned 
to each county for road purposes from any source, and all the funds! and revenues from 
ad valorem taxation, motor vehicle license tax, and gross production tax going to 
the various counties for road purposes, are placed in the county treasury in the high¬ 
way fund, and are expended, by order of the county commissioners, on county high¬ 
ways, as these are defined in the general classification of the highways of the state. 
In the administration of county and township road finance and operations, the com¬ 
missioners are subject to no restrictions or supervision on the part of the State High¬ 
way Commission, but are empowered to contribute to the state highway fund for use 
on the county highways in their respective counties, such amounts as would, in their 
judgment, be equitable, just, and for the best interests of the county. 


142 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


Duties of County Commissioners. The law provides that the county commissioners 
shall not designate more than 25 per cent of their public highways as county high¬ 
ways; that it shall be the duty of the commissioners to designate, construct, and main¬ 
tain as county highways those roads which best serve the most people in their travels 
from points in the couinty to trade centers in the county; that the county commissioners 
shall have exclusive jurisdiction over the resignation, construction, maintenance, and 
repair of all county highways and bridges; and that their decision in all such matters 
is final. The commissioners are empowered to purchase materials, machinery, and 
supplies, and to enter into all necessary contractual relationships in acquiring right of 
way and in awarding contracts incidental to road and bridge construction and main¬ 
tenance. 

The commissioners are authorized by law to employ a county engineer, road super¬ 
visors for the variousl road districts, and all necessary labor. 

County Engineer. As now provided by law, the county commissioners are directed 
to employ a competent engineer to be known as the county engineer, whose salary 
shall be fixed by the board of county commissioners and whose term of office shall 
not extend beyond the term of office of the commissioners employing him. The engineer 
is required to pass an examination, to be held by the State Highway Department, and 
to receive from the Department a certificate of competency. The law also provides 
that, where the county surveyor is competent, he may act as the county engineer. 

The county engineer may be removed from office by the county commissioners; 
and the State Highway Commissioners may recall or cancel his certificate for gross 
neglect of duty or for other causes. It is provided, however, that county commission¬ 
ers may, in their discretion, in lieu of appointing a county engineer, arrange for the 
State Highway Department to perform the engineer’s work for the county, free of 
all costs except for the per diem and actual necessary expenses. It is further pre¬ 
scribed that the county engineer may serve two or more counties. 

Townships Abolished. In 1933 the Oklahoma legislature enacted a law abolishing 
township officers and providing that the powers and duties of such officers be trans¬ 
ferred to and exercised by the board of county commissioners, the county clerk, and 
the county treasurer. The result was to place all roads and bridges in the county 
under the jurisdiction of the county commissioners, except those included in the state 
highway system and apparently excepting also the highways and bridges within cities 
and towns. The legal classification of roads as state, county, and township was not 
changed. 

The abolishment of the township as an administrative area, removing one of the 
fundamental weaknesses in rural road administration, marks perhaps the only sig¬ 
nificant advance Oklahoma has made in local road administration. Nevertheless, ade¬ 
quate financial provision has not yet been made to provide funds' for township road 
development and maintenance. In expending the greatly reduced highway runds, county 
trunk roads have perhaps justifiably received first consideration, with the result that 
in most counties, with the exception of work being done by Federal Emergency Relief 
projects and small Appropriations from the county general fund, work on townshin 


roads has practically ended. 

COUNTY HIGHWAY FINANCE 

The major sources' of revenue for the county road system are the following P.r,n,i 



It is further provided that before any bonds can 


can be issued, the same shall be 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


143 


oidered by not less than three-fifths of the electors voting at an election to be held 
for that purpose. Of the 77 counties in the state, 66 have issued bonds in a total 
amount of $34,532,201, of which there is notav outstanding $24,183,192. Township bonds 
now outstanding for roads and bridges total $5,782,272. 

The major portion of county bond issues has been used for the construction of 
county roads later embraced in the state system, or have been turned over to the 
State Highway Department to be used in connection with federal aid for the construc¬ 
tion of state highways in the respective counties. County funds used in state high¬ 
way construction on June 30, 1934 amounted to 13.98 per Capita, compared with $40 30 
per capita of state funds invested. 

Gasoline and Motor Vehicle Taxes. The statutory regulations under which the 
users tax revenues are allocated to counties for county road purposes have been out¬ 
lined in the preceding chapter. 


In 1933 the legislature enacted a law creating the county emergency investment 
und and required that one-half of all money received from motor vehicle fees and 
gasoline tax apportioned to the several counties for construction, maintenance and 
repair of county highways should be placed in the county treasury and be used bv 
the county treasurer for the following purposes _and in the order named, no part of 

' e f ^ nd t0 b f used f0T the second or any succeeding designated purpose until the 
preceding requirements had been satisfied: 


First: For investment in outstanding non-payable county warrants which have been is¬ 
sued against appropriations for the current fiscal year. 

feecond: For investment in such warrants issued against appropriations for any prev¬ 
ious years and to pay judgments against any county on account of such unpaid warrants. 
Necessary ad valorem tax levies shall, be made and when collected shall be used to reim¬ 
burse said fund. 

Third : For payment into the sinking fund as necessary for purpose of paying interest 
and principal of outstanding bonds for the construction of roads and bridges; any amount 
so used shall reduce by a corresponding amount the annual ad valorem levy for such purpose. 

Fourth: For payment monthly into the county highway construction and maintenance 
fund when such outstanding warrants and judgments have been paid. When there is no such 
indebtedness, the provisions of the act do not apply. 


One of the effects' of this law is to tie op the unexpended balance of such funds 
from June 30 to December 31 and the payment of it into the road fund in two lump 
installments, thus making difficult an orderly and properly planned prosecution of road 
work. 

Giross Production Tax. One-sixth of a gross production tax levied on petroleum, 
oil, natural gas, or casinghead gas, asphalt, lead, zinc, and other minerals, is paid 
to the county treasurers, to be credited to the road and bridge fund. 

Ad Valorem Taxes. The appropriation for county roads from the general fund is 
limited to> what the excise board directs to be appropriated from the general fund, 
under the 15 mill limit established by the constitutional amendment of 1933. Few 
counties find it possible, under the 15 mill levy, to provide for the necessary county 
requirements and have any margin left for county or township roads. In 1934-35, 21 
counties only set up appropriations for roads from the general fund; and in 1933-34, 
only 14 counties. 

Osage County. By act of Congress 1 per cent of all oil and gas royalties from 
Indian lands go to counties for road purposes, amounting in 1934 to $28,864. This 
amount is not set up in the budget, and is used for the maintenance of any roads in 
the county. 

Work on Roads in Lieu of Taxes. The Oklahoma law provides that every male 
over 21 and under 50 is subject to road duty of four days each year, and that any 
person may be exempt from road duty by paying the supervisor of his district the 
sum of $10. The supervisor is authorized to employ, with the money so paid, teams 
and men to work on roads, or to pay all such money to the county treasurer for the 
benefit of the respective districts. Reports from 40 of the 77 counties in state show 
that no road duty taxes has been worked out in 1934; and the county clerk’s annual 


144 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


reports fOT the last four years show no receipt of money for the benefit of the road 
district from this source. It is evident that this traditional method of road building 
and maintenance has outlived its usefulness in Oklahoma. The possibility of abuse 
in connection With that part of the law relating to the cash payments in lieu of labor 
are appai'ent. The repeal of this law is recommended. 

Revenues Classified by Source. County funds derived from bond issues and the 
roads 1 constructed with these funds have, with few exceptions, been transferred to 
state highway administration. Aside from the proceeds of bond issues, the amounts 
available for local road con! 
sources from which they have 

Highway Revenues 1 

Motor fuel _ 

Motor vehicle _ 

Gross production _ 

Bus tax _ 

Road fine _ 

Cigarette license 2 _ 

Medicine peddlers _ 

Condemned equipment _ 

Miscellaneous _ 

State ad valorem 2 _ 

County ad valorem _ 

Surplus previous years _ 

County road ad valorem _ 

Total-$10,451,406 


iction and 

maintenance from 1930 to 1934, and the 

ien derived, 

are shown 

below: 



1930-31 

1931-32 

1932-33 

1933-34 

Total 

$ 2,709,421 

$2,101,436 

$2,183,471 

$1,227,063 

$ 8,221,391 

_ 2,347,676 

2,338,251 

1,353,367 

774,659 

6,813,953 

1,095,046 

599,582 

592,842 

592,435 

2,879,905 

683 

1,583 

814 

13,775 

16.855 

5,317 

7,004 

1,811 

359 

14,491 

72,034 

66,111 

69,268 

84,747 

292,160 


75 

2,811 

50 

2,936 

982 

7,142 

269 

3,416 

11,809 

4,213,709 

160,659 

152,750 

367,748 

4,894,866 

6,538 

198,263 

110,145 

76,672 

391,618 

:t 

211,087 

647,282 

402,900 

1,261,269 

3 

735,250 

285,498 

202,542 

1,223,290 

3 

60,845 

36,278 

40,671 

137,794 

-$10,451,406 

$6,487,288 

$5,436,606 

$3,787,037 

$26,162,337 

county clerk’s annual 

reports 

cannot be 

accurately 


Miscellaneous” represents income from 
lump sums by various counties. The cigatette tax 
revenue that has been fairly uniform through the 
the only one showing a substantial increase. The 


The revenue reported in the 
itemized. The total of $4,894,866 credited to 
various classifications reported in 
appears to be the only source of 
four-year period. The bus tax is 

decline in gross production revenues reflects economic conditions; while rhe marked 
decline in motor fuel and motor vehicle revenues can be accounted for in part by the 
economic situation, but in larger part by the repeal of state ad valorem raxes and 
diversions to purposes other than highways. 

Expenditures. The data given! in Table I, also derived from the county clerk’s an¬ 
nual reports show the manner in which the revenues have been expended.' The break- 

Tif- , cannot be used as a basis for definite conclusions because of 
methods used in distribution and the frequent 
lump sum. It is believed, however, that 
represents with reasonable accuracy the 


variations in the 
grouping of several classifications in a 
the ratio between the several classifications 
various items of expenditure. 


„„„ . TABLE I 

EXPENDITURES —COUNTY AND TOWNSHIP 
FISCAL YEARS 1930-31 TO 1934-35 

1932-33 

$ 96,307 

118,468 
7,547 
514 
54,451 
43,503 
14,000 
13,687 
353,343 
261,083 
328,472 
25,000 
3,201.567 
5,310 


ROADS 


Items 

1930-31 

1031-32 

Engineers’ salaries 
Employees’ salaries 

Special service 

Advertising 

Mileage—per diem 

$ 119,717 

$ 99,344 

139,128 
11,435 
849 

Interest op warrants 
Compensation insurance 
Land 

- - 30,161 

11,096 

51,493 

3,721 

53,329 

541,147 

245,030 

344,047 

25,003 

3.503,387 

24.689 

New Machinerv 

Repairs 


Gas—oil 


Undistributed 

Highway maintenance 
Bridge maintenance 

- 3,364.358 


1933-34 


$ 


65,389 
85,369 
8,646 
3.258 
34,283 
14,899 
4,827 
20,076 
203,200 
211,454 
244,163 

2,153,553 

4,473 


1934-35 4 

$ 69,329 

93,000 
. 22,626 
3,120 
43,551 
17,340 
14,550 
24,389 
245,168 
193,431 
268,882 
40,449 
1,987,801 
3,000 


Total 


$ 


450,086 
566,859 
87,737 
26,308 
192,560 
157,401 
48,194 
126,887 
2,188,891 
1,151,625 
1,481,190 
359,005 
14,210,666 
37,477 


’Repealed. rec " r ’ ts taken trom til! ’ ““My clerk’s annual financial statement. 
^Appropriations a ^ akl<? ’ probab, >' i ” ci “« “Miscellaneous.” 




















































ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


145 


Items 1930-31 1931-32 1932-33 1933-34 1934-35 1 Total 


Miscellaneous _ 603,070 98,221 50,871 34,839 _ 786,SOI 

Road construction _ 3,228,501 1,163,403 831,099 258,185 361,749 5,842,937 

Bridge construction _ 791,366 . 337,453 184,802 57,694 92,129 1,463,444 

Aid to townships _ 98,891 69,053 64,613 84,016 137,571 454,147 


Total Highway Bund _$10,100,352 $6,771,012 $5,654,637 $3,488,129 $3,618,085 $29,682,215 

County roads 2 _ 169,204 59,606 21,932 49,409 102,548 402,699 

County surveyor 3 _ 19,806 17,079 19,230 15,363 14,441 85,919 


TOTAL COUNTY _$10,289,362 $6,847,697 $5,695,799 $3,552,901 $3,735,074 $30,120,833 


An examination of the table of revenue and expenditures will show that in the four 
liscal periods from 1930-31 to 1933-34, total revenues for county highways decreased 63.8 
per cent; and total highway expenditures, 65.5 per cent. Most significant, however, are 
the reductions in the various items of expenditure. During this four-year period, engi¬ 
neers’ salaries decreased 45.4 per cent; employees’ salaries, 34.8 per cent; and laborers 
(special services), 77 per cent; while expenditures for highway maintenance decreased 
46 per cent and bridge maintenance 81.9 per cent. The indicated reduction in purchase 
of new machinery is 76 per cent: while repairs and gas and oil remain at a rather 
uniform level, showing a reduction of only 12.2 per cent and 17.4 per cent respectively. 
The items under “Miscellaneous" represent largely expenditures for machinery, gas, 
and oil. Road construction shows a decrease of 92 per cent; and bridge construction, 
92.7 per cent. It is apparent that salaries and expenditures for labor have not decreased 
proportionately to the reduction in income or in volume of work. 

OPERATING RESULTS 

From June 30, 1930 to June 30, 1935 the counties of Oklahoma will have expended 
approximately $30,120,833 from county road funds. The amount included in the above 
sum for the fiscal year 1934-35 is based on appropriations and it is assumed that it will 
be expended. The townships within this same period, although they were abolished in 
1933, expended on township roads the sum of $2,798,759, bringing the total to $32,919 592. 
It is interesting to note that during this same period the total expenditures from the 
county general fund amounted to $37,350,173; and, during the five calendar year period 
1930-34, the state expended in the development of the state highway system approxi¬ 
mately $72,648,637. The relative disbursements of these three governmental agencies 
makes clear from a financial viewpoint the importance of an elhcient and competent ad 
ministration of county highways. 

Although the method of segregating and recording highway "expenditures by the 
court clerk in his annual reports does not render possible an accurate determination oi 
costs in the various classifications, the figures are informing and reveal the essential 
facts as to how the $32,919,592 was expended in the period indicated. It appears that, 
including miscellaneous items, $15,033,944 was charged to highway and bridge main¬ 
tenance; $1,130,099 to salaries and wages; $7,306,381 to road and bridge construction; 
and $5,180,711 to new machinery, repairs, gas and oil. The mileage and per diem of the 
county commissioners amounted to $192,560. 

Information available is insufficient for an accurate evaluation of results obtained 
in the expenditure of this money. All quantitative data indicate that the returns have 
been meager and that a comparatively small part has been expended on new construc¬ 
tion or permanent betterments. Except in a few counties that employ county engineers 
and maintain a competent highway organization, informing records are not kept cf mile¬ 
age and type of roads constructed and improved and mileage and type of roads main¬ 
tained. No reports of road operations are published. Thus, a sum of nearly 33 million 
dollars in county road and bridge construction and maintenance is expended without de¬ 
tailed records and classifications of expenditures. Nor are there annual reports to 
inform the taxpayers what has been accomplished in the expenditure of such funds. 
These deficiencies constitute a serious indictment of the present county highway admin¬ 
istrative system. 

Appropriations. 

Appropriated from general county fund. 

^The portion of this chargeable to highways is not ascertainable. 
















146 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


An annual report should be made of county highway operations showing in proper classi¬ 
fication all items of receipts and disbursements together with costs in detail of bridges built 
and maintained and mileage of roads by type improved, maintained, and constructed. 

County and township road development. No reliable data are available to show in 
each county the allocation of expenditures for road purposes between the county and 
township road systems since the abolition of the township in 1933; nor is there any 
accurate record of mileage and type of county and township roads. The figures submitted 
herein are based on data collected from records and reports of county officials and data 
collected and supplemented by estimates on basis of expenditures, arranged by a member 
of the staff of the United States Bureau of Public Roads as of Decemeber 31, 1933. 
Since 1933, little work has been done on township roads, other than the maintenance 
necessary to keep the roads passable for traffic, with the exception of Federal Emergency 
Relief work, results of which are not included in the figures herewith submitted. 

Table II shows total mileage by type built during the year and total mileage of 
county and township roads existing at the end of the fiscal year, June 30, 1933. 


TABLE II 

TOTAL MILEAGE BY TYPE BUILT DURING YEAR AND TOTAL MILEAGE OF COUNTY OR 
TOWNSHIP ROADS EXISTING AT END OF FISCAL YEAR ENDING JUNE 30, 1933 





New 


Reconstruction Total Mileage 




Construction 

or 

of Existing 

Types of Roads 



Built 


Resurfacing 

Local Roads 




DuriDg 


Completed 

by Types at 




Year 


During Year 

End of Year 




(Different or 

(Same type 






better than before) 

as before) 



Non-surface Roads: 








Unimproved earlh road 





1,000 


71,668 

Improved earth road _ 

— 


. _ 250 


1,500 


24,299 

Total__—_ __ 



_ 250 


2,500 


95,967 

Surfaced Roads: 








Sand, clay_-__ 



_ . 


__ 


941 

Gravel, chert shale, etc., including surface treated 

_250 


400 


3,662 

Bituminous concrete, including sheet asphalt 




__ 


11 

Concrete, Portland cement, plain 

and reinforced _ 

, . 


_ 


20 

Brick vitrified ___ _ 



_ __ l 


__ 


159 

Asphalt 

— 


— 


— 


2 

Total_____ 



250 


400 


4,795 

GRAND TOTAL MILEAGE 

— 


._ __ 500 


2,900 


100,762 

Note: All mileage of state system and Federal aid system omitted. 




Table III shows the approximate condition of the county highway system including 

township roads by counties on 

December 31, 

1931. The 

data for this 

table 

were de- 

rived from the same sources as 

those used in 

the precedin 

g table. 




TABLE 

ill 





COUNTY HIGHWAY SYSTEM, 

INCLUDING TOWNSHIP 

ROADS, 1931 





Graded and 


Surfaced 

Unimproved 

Groups by 

Total 

Drained 





Population 

Miles 

Miles 

Per cent Miles (Per cent 

Miles 

Per cent 




of Total 


of Total 


of Total 

5,000-10,000 : 








Cimarron-- — _ 

_ 2,376 

362 

15 

_ 


2,014 

85 

Harper- ___________ 

1,153 

258 

22.4 

2 

2 

893 

77.4 

Love ___ _ - __ - 

C92 

45 

6.0 

3 

4 

644 

93 

Total 

4,221 

665 

15.8 

5 

.118 

3,551 

84.1 

10,000-15,000: 








Adair _ _ - 

750 

175 

23 200 

27 

375 

50 

Atoka__ — _ ___. 

926 

229 

25 

10 

1 

687 

74 

Beaver _ — _____ _ 

._ 1,425 

225 

16 



1,200 

84 

Coal _ - . .. . 

976 

154 

16 

18 

2 

S04 

82 

Dewey ---- . 

- 1,200 

600 

50 



600 

50 

Ellis_ _ .... _ 

- 1,388 

248 

18 



1,140 

82 

Grant _ __ __ _. 

. 1,963 

284 

14 

16 

1 

1,663 

85 

Harmon ___ __ 

920 

390 

42 



530 

58 

Johnston _ _ _ _ __ 

_ 1,300 

_ 


SO 

6 

1,220 

• 94 

Latimer _ 

485 

345 

71 

40 

8 

100 

21 

Major _ _ ____ . 

._ 1,358 

192 

14 



1,166 

86 

Marshall _ _ _____ _ 

587 

— 


43 

7 

544 

93 













































ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 147 


Graded and Surfaced Unimproved 

Groups by Total Drained 


Population 


Miles 

Miles 

Per cent 

Miles 

Per cent 

Miles 

Per cent 





of Total 


of Total 


of Total 

Murray __ _ _ 


. _ 450 

242 

54 

45 

10 

163 

36 

Nowata _ __ _ — . 


. __ 1,180 

130 

11 

80 

7 

970 

82 

Pushmataha _ . 


_ _ _ 1,400 

200 

14 

_ 

_ 

1,200 

86 

Roger Mills _ 


1,600 

240 

15 

_ 

_ 

1,300 

851 

Texas 


2,217 

600 

27 

17 

1 

1,600 

72 





Total — — 


___ _ 20,125 

4,254 

21.1 

549 

2.72 

15,322 

76.1 

15,000-20,000: 









Alfalfa _ — _ _ _ 


1,623 

340 

21 

_ 

_ 

1,283 

79 

Cherokee _ 


. _ _ 850 

115 

14 

_ 

_ 

735 

86 

Cotton ____ 


___ 542 

300 

55 

16 

3 

226 

42 

Craig _ 


_ 1,516 

133 

9 

80 

5 

1,303 

86 

Delaware 


1,162 

503 

43 

225 

20 

434 

37 

Haskell _ _ _ . 


750 

130 

17 

620 

83 

Jefferson 


_ _ 640 

240 

38 



400 

62 

Kingfisher _ 


_ 1,535 

200 

13 

35 

2 

1,300 

85 

Mayes 


_ 1,000 

60 

6 

145 

14 

795 

80 

Noble _ _ 


- 1,382 

234 

17 

_ 

_ 

1,148 

83 

Pawnee _ _ 


_ 1,060 

300 

28 


_ 

760 

72 

Rogers ______ 


_ 1,386 

135 

10 

40 

3 

1,211 

87 

Sequoyah 


_ 1,377 

1,084 

79 

5 

.4 

288 

20.6 

Woods ___ . 


_ 1,286 

300 

23 

330 

26 

656 

51 

Woodward_ _ 


2,300 

116 

5.7 

8 

.3 

2,176 

94 

Total 


18,409 

4,190 

22.8 

884 

4.8 

13,335 

72.4 




20,000-25,000 : 









Blaine _ 


_ 1,164 

259 

22 

10 

1 

895 

77 

Choctaw _ __ __ 


_ 1,534 



14 

1 

1,520 

99 

Cleveland _ _ 


_ _ 1,299 

582 

44.8 

3 

.2 

714 

55 

Custer __ 


_ 1,698 

418 

25 

_ 

_ 

1,280 

75 

Greer _ 


1,100 

480 

44 

20 

2 

600 

54 

McClain 


. _ _ _ 1,096 

235 

21 

_ 

_ 

861 

79 

McIntosh __ 


SOS 

208 

26 



600 

74 

Tillman 


_ 1,487 

246 

16 

14 

1 

1,227 

83 

Wagoner _ 


1,135 

495 

44 

40 

3 

600 

53 

Total 


_ 11,321 

2,923 

25.8 

101 

.92 

8,267 

73.3 

25,000-30,000 : 









Beckham _ 


1,260 

289 

23 

21 

2 

950 

75 

Canadian 


1,650 

212 

13 

80 

5 

1,358 

82 

Jackson _ 


_ 1,468 

300 

20 

68 

5 

1,100 

75 

Kiowa _ — 


_ _ 1,793 

500 

28 

28 

2 

1,265 

■ 70 

Logan 


_ _ 1,779 

668 

37 

28 

2 

1,083 

611 

Okfusgee_ 


__ 1,147 

175 

15 

_ 

_ 

972 

85 

Washington 


_ 656 

184 

28 

52 

8 

420 

64 

Washita 


1,720 

430 

25 

60 

3 

1,230 

72 

Total 


11,473 

2,753 

24 

337 

2.9 

8,378 

73.1 

30,000-35,000 







500 

56 

Bryan - 


_ 900 

400 

44 

_ 

_ 

Comanche _ 


1,500 

330 

22 

20 

1 

1,150 

77 

Garvin - — —- 


1.200 

235 

20 

_ 

_ 

565 

SO 

Hughes — - 


1.059 

226 

21.4 

1 

.1 

832 

78.5 

Lincoln 


1,707 

227 

13 

_ 

_ 

1,480 

87 

McCurtain _ 


_ 1.250 

471 

38 

14 

1 

765 

61 

Pontotoc 


. 1,000 

175 

IS 

_ 

_ 

825 

82 

Stephens 


. _ _ 1,686 

165 

9.8 

4 

.2 

1.517 

90 

Total _ _ 


10,302 

2,229 

21.6 

39 

.378 

8,034 

77.9 

35,000-40,000: 






44 

199 

28 

Ottawa 


710 

200 

28 

311 

Payne - 


1,214 

505 

42 

82 

7 

627 

51 

Total - - 


1,924 

705 

36.6 

393 

20.4 

826 

43 

40,000-45,000 : 





115 


992 

80 

Carter _ 


1,235 

128 

11 

9 

LeFlore —C- 


1,390 

880 

63 

10 

1 

500 

36 

Total _ 


2.625 

1,008 

38.1 

125 

4.76 

1,492 

56.8 

45,000-50.000 : 

Garfield - 


2,093 
___ 2.099 

974 

234 

46 

n 

166 

39 

8 

2 

953 

1,826 

46 

87 

50 

Osage - 


2.128 

885 

42 

179 

8 

1,064 

Total _ - - 


6,320 

2,093 

33.1 

384 

6.1 

3.843 

60.8 

50,000-55,000 : 


_ 1,500 

300 

to 

60 

4 

1,140 

804 

600 

76 

53 

67 

Kay- ..- 

Pittsburg 


1,511 

899 

492 

250 

:>3 

28 

215 

49 

14 

5 

Total-- 


3,910 

i,042 

26.6 

324 

8.29 

2,544 

65 






























































































148 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


Graded and Surfaced Unimproved 

Groups by Total Drained 

Population Miles Miles Per cent Miles Per cent Miles Per cent 

of Total of Total of Total 

55,000-60,000 : 

Okmulgee_ 1,032 523 51 44 4 465 45 

60,0000-65,000: 

Creek' - _ 1,932 600 31 82 4 1,250 65 

65,000-70,000: _ 

Muskogee_ 1,275 800 63 75 6 400 31 

Pottawatomie_ 1,454 126 9 137 9 1,191 82 

Total _ 2,729 926 33.9 212 7.77 1,591 58.3 

79,000 : 

Seminole_ 1,111 9 1 105 9 997 90 

187,000: ~ 

Tulsa _ 895 100 11 520 58 275 31 

221,000: 

Oklahoma _ 2,433 174 _7 _ m _ 6 _ 2,118 87 

GRAND TOTAL_100,762 24,199 24.01 4,245 4.21 72,318 71.7 


The extent to which counties have contributed to county roads now incorporated 
in the state system has been stated. However, eliminating emergency relief work, the 
comparative condition of the county and township roads not built, built to permanent 
grade, and built to grade and surfaced illustrates the lack of progress Oklahoma has 
made in secondary road improvement. Five counties have less than 10 per cent of their 
total mileage built to permanent grade; 54 counties, over 10 per cent and under 50 
per cent; and 15 counties, over 50 per cent. Twenty-two counties have no surfaced 
mileage; and 50 counties have less than 10 per cent surfaced. Carrying the analysis 
further, only two counties have surfaced treated roads; and those roads totaled only 
eleven miles. One county has 20 miles of bituminous concrete: ten counties have 159 
miles of concrete; and one county has two miles of brick. In 1933 only about 4.22 per 
cent of the total mileage of the county and township road system had been surfaced; 
approximately 24 per cent had been improved and brought to established grade; while 
69.7 per cent remained unimproved. Eighty-seven per cent of the counties had no 
permanently improved roads in the local road system. 

Variation in County Road Development. The variation in development of secondary 
roads in the various counties is accounted for in part by the variation in funds avail 
able. To some extent, it has been influenced by the differences which exist in different, 
sections relative to posts of furnishing secondary road facilities. Thfere is, however, the 
usual marked relationship between taxable resources and improved road mileage. Tax¬ 
able wealth in Oklahoma counties is in no wise uniformly distributed. Nine counties have 
assessed valuations of less than six million dollars each; eleven counties, in excess of 
25 million dollars; and two counties, in excess of 150 million. Other factors, however, 
have contributed in no small degree to noticeable variations in county road building. 
Many counties have expressed a willingness to assume financial responsibility for roads 
by voting bonds; while others have refused to vote bonds and prefer to limit their opera¬ 
tions to the funds received from state collected revenues. It may be assumed, however, 
that such refusal was based upon sound judgment of the county's ability to assume the 
financial obligation. The distribution of the county’s share of the gas and vehicle tax, 
which is returned to the county in the ratio that the area and population of the county 
bear to the area and population of the state, is a source of dissatisfaction in many 
counties. The counties vary greatly both in area and population; and the amounts dis¬ 
tributed to the counties are disproportionate to the amounts collected, a situation that is 
not accepted by the various counties with universal satisfaction. 

Distribution of Users’ Tax. It is not proposed in this survey to discuss the issues 
of highway financing, or present any rigid formula for the proper distribution of the 
special taxes paid by the road user, or determine to what extent state funds should 
l>e used to assist in maintaining county road facilities when counties because Depopu¬ 
lation, wealth, and topography, or other physical factors, are unable or unwilling to 
impose this obligation upon themselves. Political expediency certainly, and theoretical 
























ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


149 

equity possibly, will recognize variations in the different regions with respect to ability 
to acquire road facilities. The solution of the immediate problem would seem to lie in 
answers to these questions: Are the revenues collected from the residents of counties 
expended for work in those counties in a proportion that is just to the taxpayers as 
well as economically sound and for the greatest public good? And is the basis of dis¬ 
tribution now used one that, will best accomplish these ends? 

The methods employed by different states vary greatly. But the most widely used 
are based upon mileage anjd registration. It appears to be a more generally accepted 
conclusion that a distribution based on mileage and assessed valuation would more 
equitably meet equitable principles of distribution. It is necessary, however, to suggest 
that the adoption of the mileage and assessed valuation basis would probably require 
the transfer of control over road mileage to the state. 

Diversions of Users’ Tax. The amounts diverted by legislative action from the 
users’ tax for highway purposes in Oklahoma’s primary and local roads funds have 
been such that the operations of all road improvements and maintenance has been seri¬ 
ously crippled. The problem of both diversion and distribution is one that goes far 

l>eyond the administration of the highway revenues. The degree of control to be exer¬ 

cised by the state over a function once regarded as purely local, and the decision as 
to how such taxes are to be expended are problems inherent in the allocation of such 
taxes to the counties. But, aside from any legal or moral questions involved, sound 
business policy would dictate the preservation of the capital already invested in high¬ 
ways by an immediate restoration of the diversions or a provision for additional high¬ 
way revenues from other sources. 

The effects of diversion on Oklahoma’s highway operations are immediately ap¬ 
parent when it is seen that, from the total collection of users’ tax in Oklahoma for 1984 

amounting to $14,448,088.02. only $6,577,887.28 was available for the construction and 

maintenance of the state primary road system; and of the $4,421,540.98 from said 
revenues apportioned to the counties of the statej one-half is diverted to the county in¬ 
vestment fund. Fifteen per cent of the amount collected from residents of cities is 
paid over to the city treasurer; and not less than 5 per cent, in so far as may be 
necessary, is allotted to the payment of interest and principal of bonds issued or to be 
issued by any county for highway improvement. Under the latter requirement, many 
counties have found it necessary to devote practically all remaining highway funds to 
interest and principal payments on bonds. 

ADMINISTRATIVE AND OPERATIVE PROCEDURE 

Administrative Organization. There is a marked similarity in the internal organiza¬ 
tion of the board of county commissioners and the State Highway Commission. In the 
county system administrative authority is legally centered in the board of county com¬ 
missioners. A statutory provision, however, divides the county into three districts with 
a commissioner elected from each district. But while the county system of commis¬ 
sioners’ districts rests on legislative authority, state districting is .set up by the State' 
Commissioners themselves. The effect of this procedure on state highway administration 
has already been discussed. The results in each case are similar. As it actually ^vorks 
out in the county, instead of a coordinated board of three commissioners, there are 
three separate and practically independent highway administrative organizations. Each 
commissioner is in effect acting for his district only and is politically responsible only 
to the electors of his district. This division of administrative authority is unsound. 
It creates three separate operating organizations to do the work that should be ac¬ 
complished by one, triples overhead, greatly increases machinery and equipment costs, 
and is in general wasteful. 

The system of secondary road administration, adopted at a time when county and 
township roads were financed by locally imposed property tax levies and road duty taxes, 
has not adapted itself to changing conditions and has demonstrated its total inadequacy 
when faced with the. requirements for technical service, continuity of policy, and rational 
planning which are essential in modern highway administration. 

The county commissioners elected to office come from many different w r alks of life. 


150 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


Except in rare instances, the commissioner does not possess the requisite technical 
knowledge or experience to carry on highway work. 

Administrative methods affecting county highway construction and maintenance do 
not appear to vary greatly among the counties, with the exception of the comparatively 
few which have wealth and income sufficient to enable them to maintain a county 
engineer and a competent technical organization for road work. Aside from these 
counties, there is little variation in administrative effectiveness in the conduct of high¬ 
way operations, other than the occasional fortunate district which happens to elect 
a commissioner with qualifications for highway work. A commissioner of this type, 
however, usually serves only one term. The few counties in which road work has 
been done economically contrast sharply with the great majority where administrative 
efficiency is lacking. 

General Operating Procedure. In general, the highway operations carried on by 
the various counties are the same. Each commissioner maintains a separate operating 
organization with machinery and equipment for road operations, appoints his own high¬ 
way superintendent, and dictates the selection of all employees. Each commissioner 
determines the extent and character of road and bridge construction and road mainte¬ 
nance in his district,- purchases! all machinery, materials, and equipment he believes nec¬ 
essary for such operations, and maintains a warehouse with some shop equipment or a 
storage lot. There is little purchase of machinery, material, or equipment under competi¬ 
tive bids, most of it being purchased locally as needed! and in small quantities. Equip¬ 
ment is usually purchased by the “shopping around method.” 

The procedure by which each commissioner does his own purchasing creates three 
purchasing agents for each county highway organization. The obvious solution of this 
problem is the establishment of a state central bureau of purchasing. The availability 
of the state laboratory for testing and a more general use of its advantages would 
follow. No data are available by which it might be determined whether there is any 
correlation between the value of equipment owned by the various counties and the con¬ 
struction work done, or between the value of equipment and mileage regularly main¬ 
tained by these counties. County highway funds are usually divided equally among 
the districts, a practice which necessarily disregards the needs of the various districts. 
The approval of all claims by the board as a whole is required by law, but this is taken 
as a routine matter, a procedure that makes possible practices and expenditures that, 
are flagrantly erratic. 

PROPOSED REORGANIZATION 

If state control over secondary roads is not to he established, the county will have 
to correct the present weaknesses in its administration and operations and become a 
capable unit with the requisite financial ability and the necessary efficiency. 

Functions of County Commissioners. It is useless to expect the existing road ad¬ 
ministrative organization of the counties to deal successfully with the technical and 
other problems required by modern highway operations. The proper functions of the 
State Highway Commission and the principles governing the recommendations offered 
for its reorganization apply with equal force to county highway administration whether 
it be left with the board of county commissioners or otherwise constituted. Specifically, 
the duties of the organization created for the control of county highways should be: 
To estimate the revenues required from local sources of taxation for improvement, con¬ 
struction, and maintenance of county roads; in the expenditure of these funds, to formu¬ 
late a plan for improvement of all local roads, and determine the order in which such 
improvements are to be carried out and their character and costs; to employ and fix the 
salary of a county engineer; and generally to supervise his activities without constant . 
interference and dictation. It is obvious that all administrative detail must he wholly 
removed from the scope of activity of the commissioners and handled by the county 
engineer. He should keep the commissioners informed of his activities; hut he alone 
should be responsible for operating results. 

The law defining the powers and duties of the board of county commissioners should be 
amended so as to limit the board to policy making, general supervision, and the appointment of 
the county engineer. ' 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


151 


Functions of County Engineer. The limitations of the powers and duties of the 
county engineer under the present law has already been stated. In comparatively few 
of the counties now employing engineers are the administrative details left in his hands. 
Obviously, if the commissioners are restricted, as suggested above, the following duties 
would reasonably devolve in the; engineer: To formulate and recommend plans for all 
county bridge and road development and maintenance, as a basis for the adoption of a 
road budget by the commissioners; to employ personnel adequate to carry_ out the pro¬ 
gram as adopted, fix their compensation, and terminate their services for cause; to t 
award all contracts for construction projects, equipment, and materials; to supervise 
directly all engineering, construction, and maintenance operations on roads; and to 
furnish technical advice and Service to other county agencies when requested. 

Qualifications. Since the immediate responsibility for county road operations should 
devolve wholly upon the engineer, his capacity as an administrator as well as his engi- 
neleriing competency must be considered in his selection. The present practice of the board 
of examiners, appointed by the State Highway Commission to hold examinations for 
county engineers, is to require applicants to pass a rigid examination before receiving 
a county engineer’s certificate. It is a widely held opinion that many certificates have 
been issued in the past to individuals not possessing the requisite engineering knowledge 
and experience. 

It is suggested that all outstanding county engineer certificates be cancelled and reexami¬ 
nation required. 

Compensation of Engineers. The engineer’s salary is a matter to be determined by 
the board of county commissioners. Salaries of engineers should not be made a subject 
of legislation. There is, however, a definite relationship between salaries and compe¬ 
tency. Of 15 Oklahoma counties reporting on engineers’ salaries, the amounts paid 
range from $900 to $4,200 per year. Two counties combined to use the same engineer at 
a salary of $2,100. One county paid for part-time work at $600 per year. All available 
data indicate the need of adjusting engineers’ salaries more nearly in conformity with 
the responsibilities of the position. 

Tenure of Office. If stability of policy and efficiency of service are to be obtained, 
the engineer should be protected from arbitrary removal. A competent engineer should 
be retained as long as he renders satisfactory service: and removal should be only 
for just cause. In case of a proposed dismissal, the board of county commissioners 
should be required to file written charges; and action should be taken only after a 
public hearing. 

Since the services of an engineer, with technical training and road building experience, 
is essential in county highway administration and operation, full administrative and executive 
authority should be vested in the county engineer; and he should be held definitely responsible 
for the efficient conduct of county road construction and maintenance work. He shoidd be 
appointed by the board of county commissioners without term, and his salary shoidd be com¬ 
mensurate with the responsibilities of the position. He should be removable only for cause 
and after written charges are preferred by the commissioners and an open hearing held. 

In summary, legislation is necessary defining the powers and duties of the county 
commissioners, limiting them to policy making and supervision, and placing full admin¬ 
istrative and executive control in the hands of a legally constituted county engineer. 
Until this is done, no substantial improvement can occur in the administration of 
county highways. Proper adjustment of powers and duties between the commissioners 
and the engineer would promote the major objectives of county road development and 
curtail the distribution of operations and funds on a basis of political expediency. 
Centralizing of all operations in one organization instead of three, reduction in the 
quantity of machinery and equipment, and utilization of a central purchasing agency 
would result in a substantial saving. The establishment of a county budget system and 
Qf effective fiscal control in the county would result in more rational planning of county 
road work and produce results of permanent character. Other recommendations made 
in this report will also contribute to the improvement of county highway administration. 

If the counties of Oklahoma can develop the public opinion and the leadership neces- 


152 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 

sary for the creation and continuance of efficient organizations, then the traditional and 
deeply rooted devotion to local government that is found in this! state will be fully justi¬ 
fied. Otherwise, control of local affairs must eventually pass from local units to the 

state. 


CHAPTER X 

CONSERVATION AND DEVELOPMENT 

Under the head of Conservation and Development, attention will now be given to 
the State Board of Agriculture, the Advisory Board of the State Farm and Industrial 
Council, the Conservation Commission, the Forest Commission, the Game and Fish 
Commission, the Flood Control Board, and the Geological Survey. 

STATE BOARD OF AGRICULTURE 

The Constitution in Section 31 of Article VI provides: 

A Board of Agriculture is hereby created to be composed of five members, all of whom 
shall be farmers and shall be selected in the manner prescribed by law. 

Said Board shall be maintained as a part of the state government and shall have juris¬ 
diction over all matters affecting animal industry and animal quarantine regulations, and 
shall be the Board of Regents of all State Agricultural and Mechanical Colleges, and shall 
discharge such other duties and receive such compensation as now is, or may hereafter be, 
provided by law. 

In some states there is an acknowledged need for better coordination between the 
various official organizations charged with agricultural education, research, and ex¬ 
tension on the one hand and with regulatory and informational (statistical) activities 
on the other. Oklahoma has evidently sought to meet this need} through a unified organ¬ 
ization. In this section, it is the purpose to limit the discussion to the administrative 
aspects of those matters which ordinarily are handled by a state agricultural depart¬ 
ment, educational work having been considered in an earlier chapter. 

According to the statutes, four members of the State Board of Agriculture are 
appointed by the Governor for overlapping five-year terms, subject to confirmation by 
the Senate. Their compensation is fixed at a per diem rate of six dollars. The 
fifth member, with the legal designation of President, is elected as such by state¬ 
wide vote for a term of four years. The President is a full-time executive officer who 
in the Board’s absence, but subject to its approval, may perform all duties imposed 
upon it by law. His salary under the current budget has been fixed at $4,000; recent 
legislation has reduced it to $3,000. 1 The President is ex officio, a member of the State 
Board of Equalization, 2 of the Advisory Board of the State Farm and Industrial 
Council 3 and of the Board of Pardons, 4 * * 7 a Commissioner of the General Land Office,* 
and chairman of the Oklahoma Forest Commission. 8 

A general office at the seat of government is required, but special meetings may be 
held there or elsewhere upon call of the President or upon petition of three members. 1 

Functions. Regulation of those varieties of business directly associated with agri¬ 
culture or the products of agriculture and compilation and distribution of pertinent 
statistical information are the primary noneducational duties of the Board of Agriculture. 8 

To meet its regulatory responsibilities, the Board has wide and specific legal au¬ 
thority. Certain specific powers are also granted by law to its subordinate organiza¬ 
tions and officers, but without limiting the powers granted to the Board. In the per¬ 
formance of its duties the Board may act in its own name, through its President, 
through a subcommittee of members, through subsidiary organizations set up by statute 
or by Board order, or through its administrative subordinates. 

Activities Relating to Animal Industry. One of the most important duties of the 
Board is the establishment and enforcement of quarantines for the protection of live¬ 
stock against communicable diseases of a malignant nature. This involves a variety of 

*Stat. 1931. Secs. 8525; Laws, 1933. Chap. 138. 

2 Stat. 1931. Sec. 12956. 

3 Stat. 1931, Sec. 8777. 

4 Stat. 1931. Sec. 3265. 

’Art.. YI. Sec. 32. 

®Stat. 1931. Sec. 4452. 

7 Stat. 1931, Sec. 8525. 

*Stat. 1931, Sec. 8526. 



154 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


activities, including inspection, disinfection, (lipping, certification, and destruction, which 
are carried out in cooperation with both federal and local authorities. For all this 
work the Board has a sufficient grant of police authority. 1 The Board also maintains 
a continuous campaign for the suppression of infection and infestation of livestock, with 
special emphasis upon the eradicating of bovine tuberculosis, sheep and cattle scab, 
ticks, and hog cholera. In all counties of over 65,000 population the Board is required 
to appoint inspectors for the examination of livestock intended for slaughter, and in 
smaller counties it may do so on petition. In both cases the work is conducted on 
a fee basis. 2 * The Board is also charged with the supervision of any system of meat 
inspection inaugurated by any city. 

For the work above referred to, the Board maintains two organizations, a Veterinary 
Bureau and a Tick Eradication Bureau, the latter being also informally styled “Live¬ 
stock Bureau.” For the supervision of the dairy industry, it has a third subdivision, 
legally designated as the “Department of Dairying” and informally called thei “Dairy 
Bureau.” 8 

The dairy work has to do primarily with the commercial handling of milk and 
cream and of their manufactured products. It involves inspection of collecting stations, 
depots, creameries, cheese factories, and the buildings and vehicles used by distributors; 
enforcement of legal standards of quantity and quality; supervision of pasteurization: 
collection of statistical and other information; preparation of bulletins in the interest 
of public health; and the formulation of reasonable rules and regulations. 4 * 6 

Under its rule making authority 8 the Board of Agriculture requires an annual per¬ 
mit for each establishment or individual, and imposes and collects fees therefor. These 
“licenses” are subject to revocation by the State Dairy Commissioner for cause.® 

Activities Relating to Plant Industry. It is the duty of the Board to- prevent the 
introduction and spread of plant pests and contagious diseases of plants, and it there¬ 
fore has authority to issue the necessary rules, regulations, and quarantine orders. An 
annual inspection is required of nurseries and of places where nursery stock is sold; 
and inspections may be made of growing stock anywhere. The Board has full authority 
over the movement of plant materials, both interstate and intrastate; and it may de¬ 
stroy such as are infested or infected beyond the possibility of treatment. 

Shippers are required to 1 take out annual permits, or certificates, which are granted 
only after inspection; and nurseries, dealers, and agents likewise. All dealers, includ¬ 
ing those in other states, are required to furnish a surety bond. Certificates may be re¬ 
voked for cause. In all cases persons affected by any order of the Board are entitled 
to a public hearing. 7 The agency through which this work is conducted is informally 
called the “Orchard and Nursery Bureau.” 

Legislation enacted in 1933 abolished the State Plant Board and made the Board 
of Agriculture responsible for the enforcement of the pure-seed laws. The office of 
State Seed Analyst, sometimes styled “Pure Seed Bureau,” remains. The pure Seed 
work includes the testing and analysis of all varieties of seed offered commercially for 
propagating purposes, the formulation and enforcement of quarantine regulations, and the 
enforcement of laws governing standards and trade practices. Tests are made In the 
Board’s 1 own laboratory at discretion and on request. For this service there is no charge 
except in cases where the number of samples presented by any one person exceeds a 

’Stat. 1931, Secs. 8780-88, 8792-8815. 

=Stat. 1931, Secs. 8789. 8791. 

8 The State Livestock Registry Board, composed of the dean of the Division of Agricul¬ 
ture, and the heads of the Animal Husbandry and Veterinary departments of the A. and M. 
College (Stat. 1931, Sec. 9057), appears to be considered definitely within the college organi¬ 
zation. The same is true of the special dairy agents under the Extension Division (Stat. 
1931, Sees. S620-21). 

4 Stat. 1931, Secs. 8600-19. 

The “State Experimental Chemist” was made responsible for the analysis of samples 
in 1919 (Stat. 1931. Sec. 8603), but the Bureau has had its own laboratory since 1930 

6 Stat. 1931, Sec. 8602. 

®Stat. 1931. Sec. 8012 

’Stat. 1931. Secs. 8890-92. 8903-27. 



ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


155 


protective maximum which the Board has authority to fix. Any person who wishes to 
ship any variety of seeds which are under permanent quarantine may do so with the 
permission of the Board, which is granted only upon the basis of satisfactory sworn 
statements of pertinent fact. Seeds brought into the state without such permission are 
subject to seizure. Transportation companies are kept informed as to quarantine regu¬ 
lations, and they may not make deliveries of consignments unaccompanied by permits. 1 

Activities in Relation to the Bee Industry. Since 1915 the Board of Agriculture has 
been concerned with the prevention and eradication of bee diseases through inspection 
of apiaries, destruction of diseased colonies, and enforcement of the law regulating the 
shipping of honey into the state. 2 This work was formerly done by tbe Division of 
Apiary Inspection of the Department of Entomology of the Agricultural and Mechanical 
College. 3 * * 

Activities in the Field of Chemistry. In 1911 the Board of Agriculture began the 
inspection of concentrated commercial stock foods and set up a Feed Bureau for the 
purpose. In 1923 this organization became the Feed and Fertilizer Bureau with scope 
enlarged to inspect commercial fertilizers. In 1929 a laboratory was set up in the 
State Capitol for this Bureau. 

Before any concentrated feeds may be exposed for sale, a sample, accompanied by 
a sworn statement, must be submitted to the Board, and an inspection tax paid at the 
rate of ten cents a ton. As evidence of payment and authorization the Board furnishes 
tags without which shipment may not be made. The Board maintains a register of 
trade names. It makes sample tests from, time to time and makes public the results 
of its analysis. It may remove any name from its register for cause. Since 1929 the 
feed taxes and penalties have been applied to the support of the Experiment Station at 
the A. and M. College/ 

Commercial fertilizers are regulated in a similar manner; but the Board collects 
an inspection tax of 35 cents a ton, 25 cents of which goes to the Experiment Station 
and the balance to the Treasury; and it collects a registration fee of $101 on each brand 
of nitrogen-fixing bacteria offered for sale in the state. 6 

Activities in the Field 1 of Agricultural Economics. Through a variety of agencies 
the Board of Agriculture undertakes to facilitate the disposal of Oklahoma farm prod¬ 
ucts to the best advantage. It does this through the adoption and enforcement of 
standards of quantity and quality, maintenance of a bonded warehouse system, and 
market service. 

Maintenance of Standards of Quantity and Quality. The Board is responsible for the 
enforcement of laws prescribing legal weights of bushels, barrels, etc., of specific articles 
and commodities, a legal ton of hay (and a perch of stone or mason work) ; alsot those 
requiring the marking of merchandise containers with name and weight of contents. 
Any member of the Board has authority to seize mill products and cereals sold in dis¬ 
regard of the legal standards and to bring the matter before the courts. 0 In a recent 
reenactment of the State Market Commission Act, the Board of Agriculture is author¬ 
ized to promulgate official standards for grading and classifying all Oklahoma grown 
fruits, vegetables, hay, and other farm products offered for sale or shipment, bub 
such standards must be those determined by the United States Department of Agricul¬ 
ture/ 

Federal cotton standards have been effective in Oklahoma since 1923, when the office 
of Cotton Grader was created to grade and classify, for the owner’s benefit, samples 
sent in by any authorized ginner or supervised warehouse. There is a nominal charge 


*Stat. 1931, Secs. SS68-72. 8874-77; Laws, 1933, Chap. 95 

’Stat. 1931, Secs. 8529, 8590-99. 

s Stat. 1931, Sec. 8590. 

4 Stat. 1931, Secs. 8854-67. 

6 Stat. 1931, Secs. 8834-40. 8849-53, 8859. 
fl Stat. 1931. Secs. 13332-40. 

’Laws, 1933, Chap. 32, Sec. 4. 



156 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


for the official sample containers. 1 No provision was made for this work during the 
current biennium. United States grain standards were also adopted by Oklahoma m 
1926, and a State Grain Inspection “Department” was| set up under the Board of 
Agriculture. The work has two aspects; regulation through sampling and inspection 
and extension service. The latter consists of demonstrations for the benefit of gram 
growers and dealers and publicity campaigns to acquaint farmers with the advantage 
of accurate grading of their product. An inspection fee of one dollar is collected only 
in case a sample is not furnished free of charge. All collections go to the State Treas¬ 
ury. 2 This branch of the agricultural organization, reduced to one man, is now charged 
with the placing of the proper grade on grain that is stored in state bonded elevators 

under the Grain Warehouse Act of 1899. 3 

The President of the Board of Agriculture, as State Warehouse Commissioner, is 
responsible for the administration of the state bonded warehouse system to protect the 
farmer who 'jvishes to store grain, cotton, broom corn, and other non-perishable farm 
products. All stored products in these warehouses are officially graded and the receipts 
therefor are guaranteed as to amount, grade, and quality, so that they may be accepted 
by the banks. All warehouses are required td carry insurance and to submit to constant 
official supervision. The system is intended to be self-sustaining, and it may not be 
extended to any warehouse not meeting expense. No liability may be created against 
the state. It) is the Commissioner's duty, upon request to act as agent for any owner of 
stored products ini selling or in obtaining loans. For this service a reasonable com¬ 
mission charge may be collected, collections going to a special fund. 4 

Market Service. A State Market Commission was created in 1917, as an ex-officio 
body of three members, including the President of the Board of Agriculture. On May 
6, 1933, the items for its support during the current biennium were vetoed ; 5 on the 
same day an act was approved abolishing the old Commission, setting up a new body 
of the same name and continuing all of the duties hitherto performed by the old organ¬ 
ization. 6 Since many of the requirements of the old act had’never been put into effect 
this legislation did away with them altogether. 

The new Commission is composed of the President and the other members of the 
Board of Agriculture and it is constituted “a Department of the State Board of Agri¬ 
culture.” 

Anyone may apply to the Market Commission for market information, including 
quoted prices and the best and most available markets for the time being. To all such 
pleas the Commission must respond. 7 Among other sources of information, the Com¬ 
mission has made use of the reports of the service of the United States Department of 
Agriculture coming into its office over a federal leased wire. On its own initiative the 
Commission has disseminated market information through regular radio broadcasts' and 
a daily market news letter on fruits and vegetables in season. 

Upon request of any financially interested party, or on its own initiative, the Com¬ 
mission is authorized to inspect farm products, and its certificates, or those which it 
may issue jointly with the United States Department of Agriculture, are receivable in 
all Oklahoma courts. 8 The Board of Agriculture is authorized to fix a schedule of fees 
to cover the cost of inspection. 9 

Under the new law the Board of Agriculture, asf such, is given authority to promul¬ 
gate official standards for grading and classifying farm) products, after investigation and 
hearing; but in every case the standard must be that prescribed by the United States 


’Stat. 1931. Secs. S557-66. 

2 Stat. 1931. Secs. S570-84. 

3 Stat. 1931. Secs. 12828-57. 12875-78. 

4 Stat. 1931. Secs. 12919-41. 

“Laws, 1933, Chap. 5. 

’Laws, 1933. Chap. 32. 

7 Stat. 1931. Secs. 8765, 8771. 

8 Stat. 1931. Sec. 8757. 

9 Laws. 1933, Chap. 32, See. 6. 



ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


157 


Department of Agriculture. It may make inspection compulsory on any farm product 
and designate the shipping and receiving points at which inspection is required. And 
it may make all necessary rules and regulations for carrying out the provisions of the 
law. 1 

The Commission determines the quality and specifications of all fruits, vegetables, 
and hay purchased by the State Board of Public Affairs for state use. 

Statistical Service. From 1927 to 1931 the Board of Agriculture cooperated with 
the United States Department of Agriculture in the conduct of a joint crop reporting 
service. Through this agency it collected and disseminated timely information as to 
crops and livestock, with details as to acreage, production, condition, values, etc. In 
this work it made use of crop reporters throughout the state. Lack of appropriations 
put a stop to this activity. The Board compiles statistical data as to land areas, crops, 
farm animals, fruits and forest products as a matter of permanent record. 

Under an act passed in 1909 the Board of Agriculture was made responsible for a 
decennial census of population and agriculture beginning in 1915, the field work to be 
done by local assessors and the compiling work to be done by county clerks. 2 In 1919 
the Board was charged with taking an annual census of agriculture, using the county 
assessors as enumerators. 3 No appropriations have been available for this work since 
1921. 

Internal Organization. Confusion of legislation and lack of precision in nomen¬ 
clature make it difficult to determine what the law directs and what the facts are with 
reference to the subsidiary organizations through which the Board of Agriculture does 
its non-educational work. Numerous laws have been enacted since statehood, often with 
conflicting or overlapping provisions and too generally without sufficient attention to 
the matter of specific repeal. Official compilers of the statutes have followed the safe 
course and included many provisions of law that have the appearance of obsolescence, 
and as a check against their compilations the official reports of the Board leave some¬ 
thing to be desired. The following setup is therefore to be viewed as approximate. The 
salaries stated are at the current budget rate, where this is different from the statutory 
salary. 

Office Proper of the Board of Agriculture : 

Secretary, $2,000 
Treasurer (member of Board) 

Finance, minute, record, and claim clerk, $1,500 
Bookkeeper, $1,500 

Veterinarian, in charge 4 $2,400: 

Two deputy veterinarians, $1,800 each 
Stenographers, $1,200 

Tick Eradication Bureau (also “Department”). (No appropriation for 1933-35) : 

Livestock Superintendent (also “Superintendent of Livestock Inspection”), in charge 
$1,800 

Livestock inspectors. “Sufficient” number authorized at $4.00 per day 
Clerk and stenographer, $1,200 

Dairy Bureau (also “Department of Dairying” and “Dairy Department”) : 

Dairy Commissioner, in charge, $1,800 
Four dairy inspectors, $1,500 each 
Clerk and bookkeeper, $1,200 
Orchard and Nursery Bureau : 

Inspector in charge, $1,800 

Assistant Inspector (or “Deputy”), $1,320. 


’Laws, 1933, Chap. 32. Secs. 4-0. 

2 Stat. 1931, Secs. 8542-51. 

3 Stat. 1931, Secs. 8530-41. 

"Divisions: Bovine Tuberculosis; Sheep and Cattle Scab; Hog Cholera ; Post Mortem 
(meat inspection), representing the old “departments” united under State Veterinarian in 
1924 (Stat. 1931, Sec. 8530). 





158 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


Office of Cotton Grader: 

Cotton Grader, in charge, $3,000 l 2 * 
File clerk and stenographer, $1,500^ 

Pure Seed Bureau: 

Seed Analyst, in charge, $2,400' 

Laboratory Analyst, $1,500 

Two traveling seed inspectors, $1,500 each 

Bee Bureau (also “Division of Apiary Inspection,” A. and M. College) : 

Chief Inspector (also “Bee Inspector”), in charge, $1,500 
Feed and Fertilizer Bureau (also “Feed Bureau” and “Feed and Fertilizer Inspection De¬ 
partment”) : 

Chief Inspector, in charge, $1,500 
Three inspectors, $1,320 each 
Shipping clerk, $1,080 
Stenographer, $1,200 

Grain Inspection Bureau (also “Department”) : 4 

Warehouse Commissioner (also “Commission” and “Department of Bonded Warehouses”) : 
President of Board of Agriculture, ex-officio Warehouse Commissioner, in charge 
Assistant Warehouse Commissioner and Grain Inspector, $1,800 
Stenographer, $1,200 

State Market Commission (Board of Agriculture ex-officio) : 

Chief Inspector, in charge, $1,800 
Three field agents, $1,200 each 
Stenographer, $1,200 
Field agent 5 * 
Statistical Bureau : 

Statistician, in charge, $1,S00® 

Stenographer and clerk, $1,500® 

Stenographer, $1,500® 

Appropriations, Expenditures, and Receipts. Those services of the Board of Agri¬ 
culture which are here considered derive their principal financial support from the 
general revenues of the state. Appropriations for recent years, with adjustments, appear 
in the table below with the “Extension” item set apart. “Administration” includes all 
overhead—covering both education and regulation—and should, but can not, be broken 
down into its two elements. 


Service 

1931-32 

1932-33 

1933-34 

1934-35 

Administration — — -- 

_ $ 26,125 

$ 26,125 

$ 20,100 

$ 20,100 

Veterinary _ -- _ —_ — _ 

— 30,900 

30,900 

29,100 

29,100' 

Tick Eradication _ _ __ 

_14,500 

14,500 

5,000 

5,000 

Dairy _ _ _ _ 

__ 13,000 

13,000 

13,000 

13,000 

Orchard and Nursery _ ___ __ 

4,500 

4,500 

4,140 

4,140 

Seed Analysis _ _ 

15,075’ 

15,075 7 

5.800 

5.800 

Bee Inspection . _ ___ 

2,700 

2,700 

2,000 

2,000 

Feed and Fertilizer__ _ _ 

28,080 

28,030 

11,340 

11,290 

Warehouse 8 _ 

5,800 

4.800 

4,550 

3,600 

Market _ _ ... __ _ 

_ 36,600 

36,600 

18,150 

18,150 

Statistics _ _ — „ _ _ __ 

- - 4,150 

4,150 

1,200 

1,200 

Total _ _ __ _ 

_ -$181,430 

$180,380 

$114,380 

$113,380 

Extension ___ __ 

_24,210 

19,210 

7,500 

7,500 

Comparable expenditure figures 

would not vary 

much from 

those in i 

the foregoing 


table except in the “market” item, where they are considerably lower. The unadjusted 
gross figures as given in the State Auditor’s reports are as follows: 


J Stat. 1931, Sec. 8557; no salai-y in current budget. 

2 Stat. 1931, Sec. S557; no salary in current budget. 

’Laws, 1933, Chap. 95. No appropriation for 1933-35. 

’No appropriation for 1933-35. Wbrk done by Warehouse Commissioner. 

8 As needed for seasonal work within current budget appropriation of $4,500 per year 
Laws, 1933, Chap. 32, Secs, 7, 9. 

®None in current budget. 

’Plant Board. 

8 And Grain Inspection. 






















ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 159 




1930-31 

1931-32 

1932-33 

1933-34 

Board of Agriculture 
Seed Analysis (Plant 
Market Commission 

Board) 

_$165,693 

$134,268 

14,922 

24,326 

It is as 

$128,649 

13,647 

14,422 

follows: 

$128,970 

51,198 


Information relative 

to receipts is fragmentary. 





1931-32 

1932-33 

1933-34 

Board of Agriculture 
Seed Analysis (Plant 
Market Commission . 

Board) 


_$46,423 

241 

$46,032 

$63,086 


_ 3,075 

3.380 1 



Publications. An annual report is required of the Board of Agriculture. 2 Instead, 
a biennial report is issued which otherwise meets the legal specifications. The Board 
also issues occasional reports of the results of feed and fertilizer analyses which the 
law requires. 3 It is authorized to report on the work of plant inspection. 4 An unnec¬ 
essary provision requires the Bee Inspector to report to the Board. 5 The President, as 
Warehouse Commissioner, is required to make an annual report to the legislature. 6 

Reorganization Proposals. One of the primary needs of the State Board of Agri¬ 
culture is a separation of those organization units which are concerned with education, 
research, and extension from those which have to do with regulatory and informational 
(or statistical) services. The latter should be grouped under a Department of Agri¬ 
culture under a technically qualified, full-time director appointed by the Board. To 
combine the duties of head of the Board and of head of the Department is to impose 
too great a burden upon a single officer. Real economy is not to be gained by such a 
combination. 

The regulatory work of the Board of Agriculture should be performed by an administra¬ 
tive Department of Agriculture under a professionally qualified head appointed by the Board. 

As a further desirable step in the evolution of a departmental system, it is sug¬ 
gested that all extension work he concentrated under the A. and M. College. This in¬ 
volves a shifting, from the Board of Agriculture budget proper, to the institutional bud¬ 
get, of all items in support of 4-H club activities, and shows and fairs. 

A study of the history of the Board shows that there has been a gradual movement 
toward a better type of organization, with decreasing reliance upon extension and 
scientific personnel in the A. and M. College for regulatory and administrative work for 
what may be termed the Department proper. Thus, the entomologist of the Experiment 
Station is no longer responsible for nursery stock inspection, the chemistry department 
of the A, and M. College no longer analyzes commercial fertilizers and stock feeds, and 
the division of apiary inspection at the same institution has been similarly relieved. For 
all these services there are now full-time officers within the Department. 

In the same way there has been a tendency to substitute single-headed administrative 
bureaus for boards and commissions of ex-officio membership. There is no longer a 
State Plant Board or a State Warehouse Commission, and the State Market Commission 
'is only a bureau misnamed. 

The power to appoint minor officers has been generally shifted from the Board to 
the President, and there has been a tendency to consolidate organizations having like 
or similar activities. Thus, instead of four so-called “departments” of Bovine Tuber¬ 
culosis, Sheep and Cattle Scab, Hog Cholera, and Ante Mortem Meat Inspection, there 
is a single Veterinary Bureau, with four “divisions,” representing the constituent “de¬ 
partments.” All this represents progress in the right direction. It remains to continue 
the work of centralization and integration, One way in which this may be easily done 
is indicated by the heads under which the Board’s activities have been discussed in this 
section, which generally follow the federal classification; namely,— 


Calendar year 1934. 

2 Stat. 1931, Sec. 8535. 

3 Stat. 1931, Secs. 8843, 8866. 

4 Stat. 1931, Sec. 8908. 

•Stat. 1931, Sec. 8597. 

"Stat. 1931, Sec. 12935. 



















160 ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


Bureau of Animal Industry 
Veterinary Division 
Dairy Divison 

Bureau of Plant Industry 
Plant Pathology Division 
Seed Divison 

Bureau of Entomology (or Bee Industry) 

Bureau of Chemistry (or Feeds and Fertilizers) 

Bureau of Agricultural Economics 
Standard Division 
Market Divison 
Statistical Division 

One advantage of the foregoing setup is that it calls things by their right names, 
a reform that is distinctly needed in the Board of Agriculture as to titles of both organ¬ 
ization units and officers within them. There is nothing rigid about it. Thus, if the 
dairy interests of the state mistakenly insist upon independent bureau status, no harm 
would be done to the scheme, the essential principle of which is to' put! things together. 
There is no perfect scheme of organization. 

The Department should be organised on a bureau basis and the existing number of bureaus, 
commissions,” etc., reduced in number. 

The present confusing array of official and unofficial designations of subordinate bureaus 
and the chief officers thereof might 7 veil be supplanted by a systematic scheme of nomenclature. 

A reexamination of the matter of fees is suggested, particularly to determine the 
authority for the existing dairy fees, and the advisability of establishing compensatory 
fees for cotton grading and grain inspection. The diversion of feed and fertilizer taxes 
to the support of the Experiment Station might well be discontinued and provision 
for its work regularly made through the institutional budget. 


ADVISORY BOARD OF THE STATE FARM AND INDUSTRIAL COUNCIL 

In 1919 a federation of county and state development organizations was created 
by law and given the name of State Farm and Industrial Council. Its sole continu¬ 
ing statutory duty was to hold an annual meeting, “The State Farmers’ Institute,” on 
the last Wednesday in August at the Agricultural and Mechanical College at Stillwater. 
Its sole grant of power was to draw up a constitution and by-laws, adoption of which 
was required before a county or community council might be affiliated. 

State Advisory Board. State leadership was to be maintained over the Council 
through an Advisory Board, (composed of the Governor (chairman), the President of 
the Board of Agriculture, and the Director of Agricultural Extension of the A. and M. 
College. This Board was to name the members of the board of directors of the Coun¬ 
cil, designate the state-wide organizations that should have representation in the 
Council, provide for the organization of county and community councils and have 
supervisory authority over the state-wide organizations. 1 While the statute stands 
unrepealed, no evidence has been found to indicate that it is operative. 


THE CONSERVATION COMMISSION 

Id the comparatively brief history of Oklahoma there have been several state 
agencies concerned with water engineering. First was the Secretary of the State 
Board of Agriculture, who, for lack of a state engineer, was charged with the engineer¬ 
ing duties upder the irrigation laws. These duties were transferred in 1915 to- the 
Highway Department. In 1924 a “conservancy act” was passed, and a Commission 
of Drainage and Irrigation was set up to enforce its provisions with reference to water 
conseiration and flood control. This body in turn was supplanted by a Commission of 
Drainage, Irrigation, and Reclamation in 1925 and by the present organization, the 


Stat. 1931, Sec. S777. 



ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


1G1 


Conservation Commission, in 1927. 1 Since 1927 the Highway Department has had no 
duties (with reference to irrigation. 2 

The Conservation Commission consists of three members appointed by the Gov¬ 
ernor and confirmed by the Senate, for a term of four years running concurrently with 
that of the Governor. It maintains an office in the State Capitol. Members’ compensa* 
tion is now fixed at $4,000' per year, together with a per diem of $4.00 and expenses 
when absent from the Capitol on official duty. 3 

Functions. It is the duty of the Conservation Commission to administer the laws 
of the state for the control of water-use generally in the public interest; to protect 
both public and private property from the hazard of floods; to promote agricultural 
and industrial development through water conservation and proper use; and to facili¬ 
tate the organization of conservancy districts and irrigation districts. Drainage and 
improvement districts and water improvement districts are subject to Commission 
supervision, as are all standing and flowing waters for which improvements have 
been made under state or county authority. With respect to the matters within its 
jurisdiction, the Commission is intended to serve as the agency for negotiations with 
the federal government, with other states, with counties, cities, and other local units, 
as well as with special districts organized or projected. 4 

A law recently passed 5 * gives to the Commission wider and more substantial powers. 
It authorizes the Commission to make contracts with Oklahoma land owners for (a), 
construction of private ponds, (b) terracing, (c) contour cultivation, and (d) planting, 
grassing, and foresting lands; and the Commission is required to encourage like en¬ 
terprises by private land owners. The Commission is also authorized (a) to construct 
storage reservoirs and to use, dispose of, and sell the stored (waters; (b) to control 
rivers, creeks, ponds, and lakes, to purify impounded water, and to prevent water 
pollution in general; (c) to afforest and reforest in the watershed areas and to aid 
in the prevention of soil erosion and floods; (d) to acquire property necessary to the 
exercise of the Commission’s functions; and (e) to “construct, extend, improve, main¬ 
tain, and reconstruct or cause to be constructed, extended, improved, maintained and 
reconstructed, and to use and operate any and all facilities of any kind necessary or 
convenient to exercise of such powers, rights, privileges, and functions by said Com¬ 
mission possessed.” The immediate purpose of the recent enactment was evidently 
to take advantage of federal appropriations ; and it is, of course, too early to appraise 
the operations of the Commission under this legislation. 

The above is by no means a complete statement of the powers and duties of the 
Commission. The scope of its authority and. responsibility includes hydrographic sur¬ 
veys, licensing for the use of water, approval of headgates and measuring devices, in¬ 
spection of structures, fixing of rates, and collection of fees,® Provision is also made) 
for the organization and administration of irrigation and conservancy districts. 7 

Appropriations* Expenditures, and Receipts. The available financial figures relat¬ 
ing to the Conservation Commission appear below; 


Year Appropriation 8 Expenditure 9 Receipts 10 


1930- 31 ___ $15,000 $7,208 _ 

1931- 32 _ 6,000 6,047 $445 

1932- 33 _ 6,000 4,723 88 

1933- 34 _ 3,000 3,264 23 

1934- 35 _ 3,000 _ _ 


1 Stat. 1931, Secs. 13241, 13244. 

s Stat. 1931, Sec. 13242. 

8 H. B. No. 84, approved Mar. 22, 1935. 

4 Stat. 1931, Sec. 13243. 

B H. B. No. 84, approved Mar. 22, 1935. 

®Stat. 1931. Secs. 13060-108; H. B. 84, approved Mar. 22, 1935. 

7 Stat. 1931, Secs. 13087-273. 

'Budget. 

“Auditor’s Report. 

"Treasury figures. 














162 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


Internal Organization. An old inoperative law (1905) authorizes the Commission 
to appoint a watermaster for each water district, subject to the Governor’s approval, 
and to remove them. The legal rate of compensation is $3.00 a day when actually 
employed. Watermasters are authorized to take on employees only to meet emergencies. 1 
The only other provision of law relating to personnel authorizes the Commission to 
fix rates of compensation for “other assistants and employees” not to exceed $3,600 
per year each for technical help and $1,800 per year each for other help. 2 

The only subordinate employee in March 1935 was a stenographer at $125 a month. 

Reports. Under the Act of 1905, an annual report to the Governor is required, 
setting forth the “operations” with reference to ;water use and an itemized account 
of expenses. 2 This ob.igation has been inherited by the Conservation Commission. 

Conclusions. Prior to the legislation of 1935, the Conservation Commission rep¬ 
resented a dream that had not come true. No western state could be indifferent to 
matters affecting water, and yet here was an organization that had run down to an 
annual basis of $3,000, and with few demands which it was called upon to fulfill. State¬ 
wide economic betterment involved water problems of first magnitude, and the state 
had only a moribund body with which to meet them. In view of the recent reorgani¬ 
zation of the Commission, it is obviously impossible, on the basis of experience, to 
make any recommendations applicable to the Commission, assuming its continuance 
as a separate agency. Recommendations regarding it will therefore be deferred to the 
end of this chapter, when other and related agencies have been considered. 

OKLAHOMA FOREST COMMISSION 

Legislation enacted in 1925 created the Oklahoma Forest Commission, a body of 
five members; three appointed by the Governor for overlapping terms of six years, 
the President of the State Board of Agriculture as chairman, and the President of the 
Agricultural and Mechanical College. One of the appointed members must be chosen 
from a list of five names or less, submitted by the State Federation of Women’s Clubs; 
a fact that indicates the origin of the movement for the establishment of such an 
organization. 4 For attendance at meetings the appointed members receive a per diem 
of $6.00. The Commission is quartered with the State Board of Agriculture in the 
State Capitol. 5 

Functions. The objective of the Forest Commission is conservation of forests and 
growing trees and of soil and water “through forestry and otherwise.” Its methods 
are propaganda, demonstration, and fire prevention. One of the Commission’s statutory 
duties is to “institute an educational program for the conservation of the forests, wood 
lots and growing trees of the State of Oklahoma,” and to create “an interest in 
forestry in sclioois and colleges.” 0 The Commission is authorized to acquire lands, 
through purchase or acceptance of donations, “to be used for state forest, park, ex¬ 
perimental, or nursery purposes ” and managed and developed under its direction. 7 
This has not been done. It is made responsible for the enforcement of the criminal 
law against willful and negligent setting of outdoor fires on public or private lands 
anywhere in the state,® and to this end it is authorized to appoint wardens. 3 No wardens 
are employed, but tower men are stationed at Broken Bow for fire detection. For 
all of its duties the Commission is granted wide rule-making power, and it is in¬ 
structed in all its activities to cooperate with the United States Forest Service and 
with the A. and M. College. 10 

_ Internal O rganization. The Commission appoints and may remove a secretary at 

4 Stat. 1931, Secs. 130S8, 13090. 

TL B.,84, approved Mar. 22, 1935. 

3 Stat. 1931, Sec. 13107. 

4 Stat. 1931, Sec. 4752. 

5 Stat. 1931, Secs. 4754-55. 

®Stat. 1931, Sec. 4753. 

7 Stat. 1931, Sec. 4753. 

8 Stat. 1931, Secs. 1863-64. 

®Stat. 1931, Sec. 4753. 

10 Stat. 1931, Sec. 4753. 




ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


163 


a maximum salary of $1,800. To be eligible for appointment a person must be a 
practical forester and not a member of the Commission. 1 The only other statutory po¬ 
sition is that of warden, which may be filledi by appointment of the Commission. 2 In ad¬ 
dition to the secretary, the headquarters’ personnel consists of two assistant foresters 
at $2,000, and a clerk-stenographer at $1,500. At the District Office at Broken Bow, 
there is an acting district, forester at $1,800; two rangers at $1,020', and one at $900- 
one towerman at $780, and three at $600. 

Appropriations and Expenditures. The appropriations and expenditures for a re¬ 
cent period appear below: 


Year 


Appropriation 3 


Expenditure 4 5 * 


1930- 31 

1931- 32 

1932- 33 

1933- 34 

1934- 35 


$16,000 

16,000 

16,000 

10,000 

10,000 


$17,407 

16,211 

16,346 

10,001 


Reports. There is no statutory requirement that the Commission shall submit 
an administrative report. 


GAME AND FISH COMMISSION 

Conservation of wild life in Oklahoma was provided for by statute in 1909, and 
the office of State Game and Fish Warden was created for its administration. In 1925 
a Game and Fish Commission was established. This is a body of three members ap¬ 
pointed by the Governor and confirmed by the Senate for overlapping terms of six 
years. All must be qualified electors and one of them must be “a well known game 
and fish conservation]s|t, ’ and another, “a man interested in outdoor life and recreations.” 
Impeachment is the only means provided for removal from office. Compensation is 
at the rate of $10.00 a day when actually employed, but no member may receive in 
excess of $100 a month. The Commission elects from its own membership, annually, 
a chairman, a vice-chairman, and a secretary. It meets in its own office m the State 
Capitol.'’ The State Game and Fish Warden is the active executive officer of the Com¬ 
mission. 8 


Functions. The Game and Fish Commission acts as an agency for the enforcement 
of law relating to game, fish, and furs, and for the acquisition, improvement, and man¬ 
agement of lands for game, fish„ and recreational purposes. It is also concerned with 
the elimination of predatory animals, and with the protection and propagation of those 
varieties of fish and /wild animals that are useful to man. 

Activities. The Commission’s powers and duties include those which it took over 
from the State Game and Fish Warden and those conferred upon it by subsequent 
legislation. The warden is now subject to its control in all .matters. There is no 
distinction in the law between activities normally performed by a policy making body 
and those which are carried out under its direction. All are subject to its authority, 
and the Commission may assign certain administrative duties to the warden or it 
may itself perform them. Matters of policy which of necessity are handled by the 
< omnjssion in its own name include the following: All personnel matters; 7 administration 
of the special “State Ffish and Game Fund” ; s cooperative relations with federal, 
state, and local authorities and with private organizations and persons, for the “ad¬ 
vancement of forestry, flood control and state park service,” as well as suppression of 
predatory anima’s ; <J and acouisition, including the exercise of the right of eminent 
domain; establishment, development, and operation of hatcheries, refuges, and pre- 


2 Stat. 1931, Sec. 4754. 

2 Stat. 1931, Sec. 4753. 

“Budget. 

’Auditor’s Report. 

5 Stat. 1931, Secs. 4830-33. 

fl Stat. 1931, Sec. 4844. 

T Stat. 1931, Secs. 4834-35. 

8 Stat. 1931, Secs. 4774, 4837-38. 
*Stat. 1931, Secs. 4S34, 4867, 4878. 












164 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


serves, as well as camp recreational grounds in connection therewith ; * 2 3 4 institution of 
court action in cases of law violation ; 2 formulation of rules and regulations ; 3 and 
conduct of “such propaganda work as will inculcate into the public mind and further 
the propagation, the conservation! and love for wild life and outdoor recreation.” 4 

All land purchases are limited by a legal maximum price of $10.00 an acre, and 
by a provision to the effect that transactions in excess of $1,000 are subject to the 
Governor’s approval. 5 

Licenses of various sorts, eleven in all, are issued in the name of the Commission 
for the taking of fish, game, and fur-hearing animals. This may be done through 
the State Game and Fish Warden, deputy wardens, justices of the peace, and county 
clerks; the blanks for the purpose being on control paper. In practice they are is¬ 
sued through retail stores, which buy the blanks in quantity. All hunting licenses 
expire on May 1 of each year; fishing- licenses on January 1; and trappers’ licenses on 
January 31; all are issued only upon payment of a fee ranging in amount from $1.25 
to $250. In most cases the issuing officers are entitled to deduct a part of the fee— 
usually 25 cents; sometimes 50 cents—for their services. All collections are forwarded 
to the Tax Commission. Permits are also issued, sometimes for a nominal fee, some¬ 
times in connection with a license. 6 

The warden and his deputies and assistants arei authorized ,to seize game, search 
without warrant, and call for assistance from citizens and pea,e officers. 1 * For the in¬ 
formation of the public, compilation of the laws is required to be published annually.*' 
For the control of trappers and dealers in raw hides of fur-bearing and predatory 
animals, reports to the Commission are required by law. 9 

From the game preserves breeding stock is distributed; from the hatcheries, fry 
for every lake and stream in the state. 

Recent legislation authorizes the Commission to cooperate with the Federal Bureau 
of Biological Survey in the control and destruction of predatory animals., and makes 
available $7,500 a year during the current biennium to match a like amount of fed¬ 
eral funds. This annual amount may be augmented through the proceeds of sales of 
furs skins, and specimens of animals taken in the course of the project. 10 

Internal Organization. The office of State Game and Fish Warden has been 
continued, but it is now subordinate to the Game and Fish Commission. The Com¬ 
mission appoints, and may remove, the Warden, who must be “a suitable and qualified 
pei son. Ilis statutory salary is $3,600. The Commission is authorized to appoint 
and employ, and remove, all necessary assistants or deputy game wardens, with or 
without compensation. It may fix rates of compensation, which may exceed $5.00 a 
day only in the case of superintendents of fish hatcheries and game preserves, and 
“experts” assisting in the Commission. 11 The present organization is as given below; all 
compensation being on*a monthly basis: 


Assistant warden_~_<j; 200 

Bookkeeper _ 225 

Assistant bookkeeper ___ 220 

Stenographer _ 2^5 

Stenographer _ 220 

20 district rangers_ 220 each 

4 district rangers- 200 each 

Superintendent of hatchery _ 230 

4 superintendents of hatchery _ 220 each 


J Stat. 1931, Sec. 4834. 

2 Stat. 1931, Secs. 4783, 4849. 

3 Stat. 1931, Secs. 4834, 4852, 4876, 

4 Stat. 1931, Sec. 4834. 

5 Stat. 1931, Sec. 4834. 

®Stat. 1931, Secs. 4777, 4806-28, 4852-56, 4861, 4871-74, 4S80-S1 

7 Stat. 1931, Secs. 4844-45, 4848. 

s Stat. 1931, Sec. 4852. 

°Stat. 1931. Sec. 4882. 

“Laws, 1933, Chap. 94. 

”Stat. 1931, Secs. 4834-35. 












ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


165 


4 helpers - 75 each 

Helper - 00 

Superintendent of game preserves_ 75 

Superintendent of game farm_ 150 

Helper _ 75 

Helper - 55 

Superintendent of wild turkey farm_ 100 


Property. In behalf of the state, the Commission liolds and manages physical prop¬ 
erties, as follows: 

Game Farm : 

Osage County, 160 acres, improved 
Propagating Farm : 

Canadian County, 74 acres 
Game Preserves: 

McCurtain County, 16,800 acres, improved 
Latimer County, 4,000 acres 
Johnston County, 147 acres 
Pushmataha County, 20 acres 
Fish Hatcheries: 

Comanche County 
Alfalfa County 
Bryan County 
Cherokee County 
LeFlore County 

Various small game refuges and a wild turkey farm are maintained on leased 
lands throughout the state. 1 

Expenditures and Receipts. A revolving State Gam© and Fish Fund has been set 
up for the financing of the work of the Commission. Into this fund go the collections 
of license fees and sundry fines, penalties, and forfeitures; and expenditures are made 
on warrants approved by the State Auditor. 2 The figures for recent years are as 
follows: 

Expenditures 3 Receipts 4 


1930- 31 _$238,174 $222,716 

1931- 32 _ 164,163 164.217 

1932 33 _ 136,468 147,889 

1933-34 _ 147,718 168,658 


Reports. Two reports were required of the State Game and Fish Warden by the 
old Act of 1909: A quarterly report; to the Secretary of State, showing the status of 
all court cases instituted, pending, and disposed of; and a biennial administrative re¬ 
port to the Governor containing a full statement of operations and recommendations 
for the better protection of wild life. 5 For these reports, the Commission is now re¬ 
sponsible. The administrative report for the biennium 1933-34 is an illustrated quarto 
pamphlet of 48 pages, .well printed. In thisi report the organization! and work of 
the Commission is described in popular style, and full information is given as to prop¬ 
erty and financial matters. It is a public document of merit. There are also book¬ 
lets and circulars which are distributed free by the Commission as a means of public 
education in the field of wild life. 

OKLAHOMA GEOLOGICAL SURVEY 

Without funds since the beginning of the fiscal year 1931-32, the Oklahoma Geo¬ 
logical Survey exists in a state of suspended animation. It was created by the legis- 


“Laws, 1933, Chap. 61. authorized a “State Lake” of 16,300 acres in Carter and Love 
counties, contingent on federal funds. 

2 Stat. 1931. Secs. 4777, 4783, 4822, 4834, 4836-3S. 

^Auditor’s Report. 

4 Treasury figures. 

s Stat. 1931, Secs. 4S41. 4843. 
















166 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


lature of 1907-08, as required by the Constitution, 1 and given the status of a “bureau” 
to operate under the direction of a State Geological Commission, composed of the 
Governor, President of the University of Oklahoma, and Superintendent of Public In¬ 
struction. 2 By legislation enacted in 1924, it was wisely placed “under the direction and 
supervision of the Board of Regents of the University of Oklahoma.” 3 This shift of 
overhead control was made without provision for the transfer of powers and duties 
from the Commission to the Board, and without provision for repeal. However, the 
intent of the nqw legislation would seem to be obvious. 

Location. From the first, the Survey has been located at Norman, in quarters 
provided under an agreement which the Commission was authorized to make with the 
Board of Regents. This was intended to be a temporary arrangement, to last “until 
suitable laboratories and testing apparatus are provided by the State.” 4 * The estimated 
value of state-owned Survey property is $20,000. evenly divided between library and 
equipment. 

Functions. As laid down in the statutes, the duties* of the Geological Survey are 
simple: (1) To study thei geological formation of' the state with special reference to 
its mineral resources, including cement, clay, stone, sand, road-building materials, and 
water; (2) to prepare and publish illustrated bulletins and reports; and (3) to con¬ 
sider such scientific and economic questions as the Board of Regents (Commission) 
may deem of value to the people.® 

Internal Organization. At the head of the administrative organization is a Di¬ 
rector, who must be “a geologist of established deputation,” appointed by the Board 
of Regents (Commission). The director is authorized to appoint assistants and em¬ 
ployees, subject to the approval of this body, which has authority to fix compensation 
of a 1 personnel, including the Director. 6 

Appropriations and Expenditures. The .last appropriation, that for 1930-31, was 
$51,000, of which $31,105 was expended in that year and $2,046 in the following year. 

Publications. A biennial administrative report to the Governor is required of the 
Director. This must show the “progress and condition” of the organization and in¬ 
clude such other information as the governing body may think necessary. 7 Bulletins 
embodying the results of scientific research have been issued up to 1932. 

COOPERATIVE RELATIONS WITH THE UNITED STATES BUREAU OF MINES 

Federal legislation enacted in 1914 made provision for intensive work in petroleum 
technology to be conducted by the Bureau of Mines* of the 1 United States Department 
of the Interior. This led to the establishment of a federal petroleum experiment sta¬ 
tion at Bartlesville in 1917. Land for the site was granted by 1 the state of Oklahoma, 
and funds to the amount of $50,000 were donated by the local chamber of commerce 
for a building. Durinjg the fiscal year 1919-20, the Bureau and the state authorities 
entered into a cooperative agreement for the conduct at this station of “Investigations 
with a view to improving conditions in the oil industry by safeguarding life among 
employees and preventing unnecessary waste of resources. 8 

Under this arrangement it has been the practice of the state to make a voluntary 
contribution of $50,000, more or less, each year, disbursements from which have been 
made by the state officers on vouchers approved by responsible officers of the Bureau. 
These vouchers have included items for supplies and equipment as well as personal 
services and expenses. They are not shown in the federal accounts, for there has been 
mo pooling of state and federal funds. On the other hand, the state personnel—la bora- 


"Art. V, Sec. 38. 

2 St.at. 1931. Sec. 4884. 

3 Stat. 1931. Sec. 4S91. 

4 Stat. 1931, Sec. 4890. 

B Stat. 1931. Sec. 4886, , 

6 Stat. 1931, Sec. 4885. 

7 Stat. 1931, Sec. 4887. 

8 Annual Reports of the U. 8. Bureau of Mines , 1918, 1920. 



ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


107 


tory and field assistants—is appointed by tlie Director of the Bureau of Mines and is 
merged with the regular station staff, working under .his direction. 1 2 
The recent record of the state contribution is as follows: 

Fiscal Year Appropriation 3 Expenditure 3 


1930- 31 _$02,500 $03,590 

1931- 32 _ 57,548 56,572 

1932- 33 _ 57,548 53,014 

1933- 34 _ 40.280 39,320 

1934- 35 _ 40,280 


GENERAL CONCLUSIONS AND RECOMMENDATIONS 

In the state administrative organization, several separate agencies are concerned 
with different aspects of the problem of safeguarding natural resources and promoting 
their use for the best interests of the people. Of these, the State Board of Agriculture 
is, or should be, mainly regulatory and should remain a separate agency. The Agri¬ 
cultural and Mechanical College, with its extension work, belongs to the system of 
higher education, although it should be closely coordinated with all state agencies 
concerned with natural resources. The functions of the Corporation Commission rela¬ 
tive to petroleum may continue where they are. Of the remaining agencies, the oldest 
is the Geological Survey; next, the Game and Fish Commission. The Forest Commis¬ 
sion is a comparatively recent agency. The Conservation Commission is the successor 
to a series of % organizations that have had to do with water engineering. And since 
1917 the state and federal governments have conducted cooperative investigations to 
minimize the waste incident to the extraction of petroleum. 

A hasty view of the situation would lead to the conclusion that all thesei agencies 
should be brought together under a single overhead organization. Such an organiza¬ 
tion, perhaps called “Department of Conservation and Development,” would be a good 
thing to have, provided the political and administrative standards of the state were 
at a higher level. Some of the agencies, however, suffer less than others from the 
system of patronage, and if .would be a mistake to institute changes which would bring 
them down to the same level merely to effect a minor reform that would read well 
in print and look well on an organization chart. 

Ultimately, the state should have such a department, headed by a single director 
appointed by and responsible to the Chief Executive: the existing commissions and 
boards should then be converted into purely advisory bodies, manned by persons will¬ 
ing to assist, but not ambitious to control. But even then it would be unwise to 
group in such an organization] all agencies of the state which support the ideal of 
“conservation.” 

Conservation is not a function; it is rather a policy, an attitude of mind. Oil 
conservation involves one sort of technology; water conservation, another. They have 
nothing in common except an idea, and they may be accomplished by different means. 
There is, therefore, no reason why oil conservation should not remain where it is— 
in the Corporation Commission. But water conservation (including stream control) 
does have an intimate relation with forest conservation, and there is every reason 
why the agencies concerned with them should be brought together. Indeed, this could 
be done at once by combining the Conservation Commission and the Forest Commis¬ 
sion, both of which have been small and weak, but confronted with problems that are 
already recognized to be of urgent importance. It is noted that, in the legislation of 
1935, the Conservation Commission is given the functions of afforestation and re¬ 
forestation. It is recommended, therefore, that: 

The Forest Commission should be abolished and its personnel and functions transferred 
to the Conservation Commission. 

The survey has grave doubts regarding the advisability of placing over the De- 


1 House Hearings on Commerce Department Appropriation Bill, 1931, pp. 319-22. 

2 Budget. 

Auditor’s Report. 











168 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


partment of Conservation a full-time, salaried commission. Such a body may com¬ 
mend itself from the standpoint of expediency during the next four years (the term 
of office of the present members) but, ati the end of that time. 

The Department of Conservation should be headed by a Director, appointed by the Gover¬ 
nor, the Conservation Commission retaining only advisory functions. 

The Game and Fish Commission might also be brought into the combination, when¬ 
ever its present standards of accomplishment would not be jeopardized. A depart¬ 
ment with three bureaus and a single advisory body, with such special advisory sub¬ 
committees as may be necessary, would probably be as much as it would now be wise 
to attempt. The functions given to the Conservation Commission require close co¬ 
operative relations between that agency and the Game and Fish Commission. It is 
probable that the latter authority, instead of the Conservation Commission, should 
regulate segregation of the races relative to fishing, boating, and bathing j 1 and the con¬ 
trol of water pollution should probably be assigned to the Department of Health, or 
to the Fish jand Game Commission in cooperation with the Department of Health, in¬ 
stead of to the Conservation Commission. 

It is assumed that funds will again be provided in the budget for the continua¬ 
tion of geological investigation on a professional basis. When that time comes, the 
Oklahoma Geological Survey should remain in its present administrative situation. 

Certainly, the relationship with the Bureau of Mines on the Bartlesville project 
should not be disturbed now, if ever. . 

The Flood Control Board, created by the 1935 legislature, has, not been studied 
and it would be altogether too early in any event to evaluate Its work. It seems highly 
improbable, however, that it possesses any functions which could not be better and 
more economically performed by the Conservation Commission. It is suggested, there¬ 
fore, that: 

7 he blood Control Board should be abolished and its functions transferred to the Conser¬ 
vation Commission (or Director of Conservation.') 


t 


3 H. B. 84, approved Mar. 22, 1935, Sec. 12. 





CHAPTER XI 


BUSINESS AND PUBLIC SERVICE REGULATION 

Agencies established in Oklahoma for the regulation of certain fiduciary businesses, 
public service undertakings! and the issuance and sale of securities include: (1) The 
Insurance Department, with which is associated the Insurance Board, and the Fra¬ 
ternal Insurance Board; (2) the Banking Department, with which is affiliated the 
Banking Board, the Building and Loan Board, and the Securities Commission; and (31 
the Corporation Commission. 

Attention will also be given in this connection to certain functions of the Secre¬ 
tary of State. 

THE INSURANCE DEPARTMENT 

An Insurance Department was established by the Constitution 1 and charged with 
the execution of all state lahvs in relation to insurance and the insurance business. 
To serve as chief officer, it provided for an Insurance Commissioner, to be elected 
by popular vote for a term of four years running concurrently with that of the Gov¬ 
ernor. Qualifications for this office were declared to be: Age 25; “well versed in 
insurance matters;” and such others as might be prescribed by law. Surety bond 
and duties were left for the legislature to determine. 

Little has been added by statute to the foregoing specifications; the amount of 
the Insurance Commissioner’s bond has been fixed at $50,000 2 * and big salary has been 
recently reduced from $5,000 to $3,600. :t 

The State Insurance Board, created in 1915, is composed of three members; The 
Insurance Commissioner as President, the State Fire Marshal, and a third member 
who is appointed by the Governor, subject to confirmation by the Senate; and two 
of whom may takje official action in the name of the Board. The appointed member 
serves as full-time secretary of the Board at an annual salary of $3,000. He is sub¬ 
ject to removal by the Governor. 4 

The Fraternal Insurance Board, created in 1919, includes the Insurance Commis¬ 
sioner and four other members appointed by the Governor “from different fraternal 
insurance societies doing business in the state,” and approved by the Senate. The 
term of office is four years or at the Governor’s pleasure, and no service compensa¬ 
tion is allowed. Provision is made for a chairman and a secretary, both to be elected 
by the Board from its own membership. 5 

Functions. There are 14 kinds of insurance recognized by Oklahoma law and 15 
classes of corporations or associations engaged in the business. It is the duty of the 
Insurance Department to administer the laws regulating the conduct of the business 
of insurance and guaranty and surety companies throughout the state. It does this 
in general through the Insurance Commissioner, with these exceptions; The State 
Insurance Boaid is charged with the control of rating bureaus and of the rates made 
for a variety of risks ; fire, tornado, plate glass, and employer’s liability. 6 * It also regu¬ 
lates mutual casualty companies,' and reciprocal or mutual indemnity contracts ex¬ 
changed between companies or individuals. 8 The Fraternal Insurance Board is charged 
solely with the granting and revocation of permits to fraternal insurance societies. 9 

Insurance Commissioner’s Activities. Although the insurance law is complex in 


’Art. VI, Secs. 22-24. 

2 Stat. 1931, Sec. 3745. 

Taws, 1933, Chap. 13S, Sec. 1. 

4 Stat. 1931, Secs. 3518. 10533, 10549-50. 

5 Stat. 1931, Secs. 10588-89. 

"Stat. 1931, Secs. 10533-53. 

’Stat. 1931, Secs. 10744-04. 

8 Stat. 1931, Secs. 10779-90. 

9 Stat. 1931, Secs. 10588-93. 



170 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


its terms, reflecting the complexity of the subject itself, the duties of the Insurance 
Commissioner are comparatively simple. 

His approval is required before a company can conduct business In the state. 
This takes the form of a permit, license, or certificate of authority which he issues, 
for a fee, after examination of documentary evidence which applicants must file with 
him to show conformity with law and satisfactory financial condition. This he does 
annually, and he may revoke such action whenever he thinks it necessary. 1 He has 
authority to prescribe the manner in which accounts are kept and he prepares and 
supplies the blank forms upon which reports must be filed with him. 

He conducts an examination and audit of all domestic companies once in three 
years or oftener at his discretion. Whenever he deems it advisable he may make 
similar examination of “foreign” companies. Upon request of five financially interested 
persons lie must examine the affairs of any particular company; and at any time 
he has authority to require an independent audit. In all such cases the work is done 
at the expense of the concern examined. 

He may refuse to file any particular form of policy which he does not approve, 
thereby preventing its use in the state. Securities on guarantee deposit are subject 
to his constant scrutiny and appraisal. Real estate in excess of that required for 
the condfuct x>f insurance business may be held beyond the legal time limit if he so 
authorizes. Fraternal insurance societies operate under rules and regulations which 
he prescribes. His approval is required whenever companies wish to reduce the amount 
of their capital or to consolidate with others. He holds a power of attorney by ap¬ 
pointment of all “foreign” companies admitted to the state. 

In case a company becomes unsound, fails to file necessary information, or other¬ 
wise falls short of full compliance with the law, the Commissioner applies the remedy 
of suspension or revocation of authority, and when the gravity of the situation de¬ 
mands it, he may seek an injunction through the Attorney General. 

The Insurance Commissioner collects fees and taxes for which the law makes 
him responsible, makes reports thereon to the State Auditor, and turns the money 
over to the State Treasurer. He is required to keep separate accounts of all collec¬ 
tions and to keep records of his transactions and of the information filed with him 
by the organizations under his supervision. He has complete authority in the Insur¬ 
ance Department proper with respect to employees; including their appointment and 
removal. 

Activities of the Insurance Board. The Insurance Board; under the law, receives 
“general basis schedules” from all companies dealing in fire, tornado, plate glass, and 
employer’s liability insurance. These schedules show premium rates on all classes 
of -risks and information affecting such rates. Rate changes may be made only on 
ten days’ notice, or such shorter period as the Board may determine. All rates are 
subject to increase or decrease by Board action within the limit of reasonableness. 2 

The Board licenses agents of companies and collects the fees fixed by law. Licenses 
are renewable annually and may be cancelled only after a hearing before the Board. 
For violation of the law, the Board may suspend for three years the privilege of any 
such company to operate within the state. This has never been done. AH Board 
orders and regulations may be made o-nly after a hearing, and all are subject to 
appeal to the Supreme Court. 3 

Jurisdiction over the following types of risks are specifically denied to the In¬ 
surance Board: Life, marine, transportation (except automobiles), hail, growing 
crops, title, mortgage guaranty, and property and risks outside the state. All frat¬ 
ernal associations are also beyond its control, 4 but. mutual casualty companies are 
subject to its special supervision, 5 and so are mutual indemnity concerns, except those 


J Stat. 1931, Secs. 10405. 10409. 

3 Stat. 1931. Secs. 10534-30. 

3 Stat. 1931. Secs 10542-47. 10552. 

4 Stat. 1931. Secs. 1054S, 10553. 

°Stat. 1931. Secs. 10744-04. 




ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


171 


having to do with insurance on lives, growing crops, and farm property. 1 * The activ¬ 
ities of the Board in meeting this responsibility parallel in general those of the In- 
surance Commissioner. The authority to impose reasonable requirements for the les¬ 
sening of cotton compress fire hazards granted to the Board in 1019,“ logically belongs 
not to the Board, but to the Department of Safety recommended in a preceding chapter. 

Within the Insurance Department the Board appoints the personnel authorized 
by law: A rate expert, and clerical stenographic assistants. 3 

Activities of the Fraternal Insurance Board. The Fraternal Insurance Board’s ac¬ 
tivities are limited to examination of the reports and papers filed with the Insurance 
Commissioner by fraternal societies, granting and revoking licenses, and reporting ex¬ 
treme cases to the Attorney General] for court action. The other duties with respect 
to these associations are performed by the Commissioner. 4 

Internal Organization. A distinction is made in the law between those positions 
in the Insurance Department which are under the Insurance Commissioner*—the De¬ 
partment proper—and those created for the “use” of the Insurance Board. Thus, the 
Commissioner is authorized to appoint and remove an actuary and employ such clerks 
and assistants as may be needed. 5 The Board may appoint a fire insurance rate ex¬ 
pert at $3,000, a license clerk and stenographer at $1,200, and a stenographer at $1,200. 

The former group, as no*w constituted, is as follows: 


Assistant insurance commissioner _ $2,250 

Fire insurance examiner and tax auditor_1,500 

General clerk and bookkeeper _1,500 

Record and filing clerk _1,500 

Stenographer and license clerk_ 1,200 


For the group under the Board the corresponding items are: 


Rate expert_$3,000 

Stenographer _1,200 


Both groups, under the law, belong within the organization of the Insurance De¬ 
partment, despite the fact that in the budget act the appropriations for them are 
made in sections widely separated. 


Appropriations* Expenditures, and Receipts. In his annual reports, the Insurance 
Commissioner gives information as to the expenditures and collections of both the 
Department and the Board over a period of years. These items,- for the last five 
years, are here presented, with a ‘' 
budgets': 

Year 


1930- 31 

1931- 32 

1932- 33 

1933- 34 

1929- 30 

1930- 31 

1931- 32 

1932- 33 

1933- 34 


istments, alon 

gside the corresponding 

items in the 

Appropriation 

Expenditure 

Receipts* 


Insurance Commissioner 


. $21,930 

$21,930 

$1,162,065 

. 21,930 

23,701 

1,107,471 

25,230 

24,553 

984,434 

25,230 

21,648 

834,265 

21,190 

20,843’ 

776,305 


Insurance Board 


. $13,000 

$12,900 

$ 119,101 

13,000 

14,750 

114,888 

14.750 

12,225 

97.926 

14,750 

10,972 

87,704 

9,275 

9,032’ 

85,123 


Reports. An annual report to the Governor is required of the Insurance Commis¬ 
sioner, setting forth the affairs of his Department. The law requires that it “shall 
contain a tabular statement and synopsis of the several statements, ast accepted by 


’Stat. 1931, Secs. 10779-90. 

a Stat. 1931, Sec. 128SO. 

3 Stat. 1931. Secs. 3516-17. 

4 Stat. 1931, Secs. 10564-93. 
“Stat. 1931, Sec. 10462. 
®Treasurer’s figures. 

’Auditor’s Report 
























172 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


the Insurance Commissioner, and such other matters as in his opinion may be of 
benefit to the public”; also “recommendations as he may deem proper in regard to 
the subject of insurance in this state,” together with a statement of “the various sums 
received and disbursed by him, from and to whom, and for what purpose.” 1 The last 
requirement is not complied with, in the reports, that are available for examination, 
for the’ obvious reason that it is a matter which necessarily comes, or should come, 
under the State Auditor. The insurance statistics called for are included, with ex¬ 
planatory comment, but there are no recommendations as to* legislation or discussions 
of insurance matters in general. Included in each report is the annual report of the 
State Fire Marshal, submitted to the Commissioner as the law requires. 2 

Reorganization Proposed. No useful purpose seems to be served by the Insurance 
Board. If it be desired to give the Governor a measure of control over the Insurance 
Department, the Constitution should be amended. The present organization is un¬ 
necessarily complex, the laws are confusing, and the division of authority between, 
the Board and the Commissioner appears to be (without plan. 

The Insurance Board should be abolished, and its personnel and functions merged in an 
integrated department under the Insurance Commissioner,. 

The Fraternal Insurance Board costs the state nothing; and, as an advisory body, 
there is no reason why it should not be continued. 

Whenever it becomes expedient, the Constitution shoidd be amended so as to make the 
Insurance Commissioner appointive by the Governor, but without the advice and consent of 
the Senate. 

It might be desirable also to amend Section 1 of Article XIV of the Constitution, 
so as to authorize the control of guaranty companies, not through the Banking De¬ 
partment, but through the Insurance Departmejnt, as is the existing practice. 

THE BANKING DEPARTMENT 

All state banks, and loan, trust, and guaranty companies in Oklafioma are sub¬ 
ject to regulation by state authority under the Constitution 3 which instructs the legis¬ 
lature to enact laws for the protection of both shareholders and depositors, to be ad¬ 
ministered by a Banking Department under the direction of a Bank Commissioner. 
This oflicer. so the Constitution provides, must be appointed by the Governor, subject 
to senatorial confirmation, for a four-year term. 

Bank Commissioner. Legislation to this effect was enacted at the first legislative 
session and amended from time to time. It created the office of Bank Commissioner 
and specified qualifications and disqualifications; but since 1924 the sole qualification 
prescribed has been “a taxpayer for three years prior to appointment.” 4 The statutory 
salary rate is $5,000; 5 a surety bond of $25,000 is required. 6 Conviction on a charge 
of misconduct or corruption in office automatically removes a Bank Commissioner from 
office. 7 

Banking Board. Constituting an integral part of the Banking Department is a 
Banking Board of four members, one of whom must be the Bank Commissioner, serv¬ 
ing as chairman. For the other three, the law provides; That none shall be an ofli¬ 
cer or director of a national bank ; that all shall be appointed by the Governor and 
confirmed by the Senate for terms ranging concurrently with that of the Governor; 
and that their compensation shall be at the per diem of $15 for attendance at meet¬ 
ings of the Board. 8 


3 Stat. 1931, Sec. 10464. 
2 Stat. 1931, Sec. 3742. 
3 Art. XIV, Sec. 1. 

4 Stat. 1931, Sec. 9147. 

5 Stat. 1931, Sec. 9148. 

s Stat. 1931, Sec. 9156. 

7 Stat. 1931, Sec. 9163. 

s Stat. 1931, Sec. 9143. 



ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


173 


This Board serves as a liaison body between the banks and the state regulatory 
authorities concerned with their affairs. To this end the law provides that the banks 
shall iyave a voice in the selection and removal of Board members, and aiso in the re¬ 
moval of the Bank Commissioner. In the matter of appointments, it authorizes the 
organization of a State Bankers’ Association, made up of representatives, one each, of 
the state (tanks. The association, through an executive council of nine to fifteen mem¬ 
bers, is authorized to present to the Governor a list of names of nine qualified persons, 
from which he must appoint such three as he may see fit. 1 In the matter of removals, 
two-thirds of the members of the association are authorized, by majority vote, to make 
recommendations which the Governor is required to take into consideration in de¬ 
termining his action. It is the Governor, however, who has the final word, and he 
is bound by the requirement of the law that removals must be made “for cause.” 2 

Functions. It is the duty of the Banking Department, as prescribed by statute, 
to regulate all banks (other than national banks) and trust companies for the pro¬ 
tection of both depositors and holders of bank shares. It does this through the Bank¬ 
ing Board, through the Board acting in conjunction with the Bank Commissioner, and 
through the Bank Commissioner alone. As ex-officio member and chairman of the 
Board, the Commissioned has a vote; in matters calling for joint action with the Board 
he would appear to have no determinate measure of authority; as Bank Commissioner 
he is governed generally by the statutes and in certain particulars he is made re¬ 
sponsible to the Governor. 

Activities of the Board. The Banking Board’s approval is necessary in the case 
of -all appointments to statutory positions (except stenographer) which the Bank 
Commissioner is authorized to make in the Banking Department. 3 It may summarily 
remove “any commissioner, secretary, examiner or employee” of the Banking Depart¬ 
ment for neg'ect of duty, incompetence, negligence, or insubordination. 4 5 * In its dis¬ 
cretion it issues or withholds the certificates which the law requires before a trust 
company may establish a commercial banking and savings department.” It is responsi¬ 
ble for the administration of the Depositors’ Guaranty Fund, which has been in process 
of liquidation since the x - epeal in 1923 of legislation providing for a system of com 
pulsory depositors’ insurance. 8 * 

The statutes also make it the Board’s duty to cause one of the examiners to visit 
each bank twice each year, ot oftener if the Bank Commissioner shall deem neces¬ 
sary. 7 Like instructions are given to the Commissioner elsewhere in the law 8 and 
action by the Board would seem to be necessary in this respect only in case of failure 
of the Commissioner to perform his 9 worn duties. 

Joint Activities of Board and Commissioner. Subject to specific exceptions, the 
Banking Board and the Bank Commissioner are jointly responsible for the administra¬ 
tion of the banking laws! of the state, 8 for supervision and control of the issuance of 
charters to state banks 10 and trust companies, 11 and for supervision of commercial and 
savings departments of trust companies. 12 They are charged with the formulation of 
rules and regulations to govern the conduct of trust company savings departments. 13 
Their consent is required before any bank may purchase real estate in excess of one- 


7 Stat. 1931, Sec. 9144. 

2 Stat. 1931, Sec. 9145. 

3 Stat. 1931, Secs. 9149, 9151, 9153-54. 

4 Stat. 1931, Sec. 9146. 

5 Stat. 1931. Sec. 9231. 

®Stat. 1931, Sec. 9165-67. 

7 Stat. 1931, Sec. 9146. 

8 Stat. 1931, Sec. 9160. 

®Stat. 1931, Sec. 9143. 

10 Stat. 1931, Secs. 9101, 9143. 

^Stat. 1931, Sec. 9203. 

12 Stat. 1931, Sec. 9232. 

,3 Stat. 1931, Sec. 9239. 




174 


ORGANIZATION AND ADMINISTRATION OP OKLAHOMA 


third of its paid-in capital. 1 Their sole institutional responsibility is the determina¬ 
tion of thei tenure of office of the “assistants to the) Bank Commissioner.”* 

Bank Commissioner’s Activities. As already indicated, the Bank Commissioner 
nominally is paramount in the Banking Department. He appoints the Department 
personnel, but subject in all important cases to confirmation by the Banking Board. 
The entire staff is under his immediate direction. 3 He has recently been made re¬ 
sponsible for supervision of cooperative savings and credit associations, or “credit 
unions.” 4 

His activities with reference to the institutions under his control are of two sorts, 
regular and contingent; the latter being conditioned upon circumstances set forth 
in the law. This distinction is perhaps of minor significance. It is here made merely 
to give point to the statement that the duties imposed upon the Commissioner do noi 
measure, they only indicate, the nature and extent of his activities at any particular 
time or during any particular period. His broad duty is to see to it that “all's well;" 
his activities are directed toward that objective. 

In the matter of new banks, the Bank Commissioner’s approval of the promoters 
of a project is required before articles of incorporation may be executed, and his au¬ 
thorization is necessary before any new organization may commence the business of 
banking. The authorization takes the form of a certificate which he issues after ex¬ 
amination to determine that all legal requirements have been met. 5 * He may also 
revoke the charter of a bank for violation of the banking laws as well as for refusal 
to submit to examination or to produce statements, or otherwise obstructing efforts 
to determine its condition. 0 

Since the work of the Bank Commissioner is dependent upon information, the law 
requires institutions under his supervision to file numerous specific documents and to 
submit regular reports according to forms prescribed by him. He may also call for 
special reports at any time. 7 First-hand information is made available through ex¬ 
amination; of individual banks and trust companies, twice a year or oftener at the 
Commissioner’s discretion. 3 * In the case of trust companies, the examination must in¬ 
clude their fiduciary funds.® In the case of institutions belonging to the Federal Re¬ 
serve system, the Commissioner may accept the filings of the federal examiners in 
lien of his own. 10 A schedule of examination fees is prescribed by law; collections 
are made by the Commissioner and deposited with the State Treasurer. 11 

In addition to the broad powers given to the Bank Commissioner in general terms, 
there are various specific provisions of law which authorize him to interfere in the 
management of the institutions under his supervision. Thus, he may order the re¬ 
pletion of money reserves and fiduciary funds which have become inadequate; 12 his 
consent is required before a bank may pay a higher interest rate than 4 per cent on 
deposits; 13 he may eliminate from the assets of a bank any loans made in excess of 
the legal proportion of loans to capital and surplus ; 14 increases and decreases in capital 
stock are subject to his approval, and so are transfers of shares from one holder to 


3 Stat. 1931, Sec. 9120. 

2 Stat. 1931, Sec. 9150. 

3 Stat. 1931, Secs. 9149. 9151-55. 

4 Laws, 1933, Chap. 157. 

5 Stat. 1931, Secs. 9102, 9105, 9110. 

9 Stat. 1931, Secs. 9118, 9120. 

7 Stat. 1931, Secs. 9102. 9107-08, 9110, 9117. 9121, 9124, 9128, 9102, 9173, 

9231; Laws, 1933 Chap. 157, Secs. 1. 7. 
s Stat. 1931, Sec. 9100. 

®Stat. 1931, Sec 9224. 

10 Stat. 1931, Sec. 9141. 

“Stat. 1931, Secs. 9157, 9230; Laws, 1933, Chap. 157. Sec. 7. 

12 Stat. 1931, Secs. 9136, 9229. 

13 Stat. 1931, Sec. 9134. 

“Stat. 1931, Secs. 9106, 9124. 





175 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 

another. 1 He may require the removal of any dishonest or incompetent bank officer, 2 
and he must determine the amount and nature of surety to be required of both offi¬ 
cers and employees. 3 

In the event of insolvency, the Bank Commissioner takes possession and main¬ 
tains control through to the end, whether it be winding up or reorganization. 4 * 

Internal Organization. Second in rank to the Commissioner is the Assistant 
Bank Commissioner, who acts in place of the Commissioner during the latter’s absence 
or disability, and also serves as ex-officio secretary to the Banking Board (and also 
to the Building and Loan Board). Three years’ actual experience in banking is fixed 
as the minimum qualification for this position, and the statutory salary is $3,600 ; 6 
conviction for misconduct or corruption in office automatically effects his removal. 6 

Staff positions created by law are: Attorney ($5,000), assistant attorney, ($4,- 
000), chief clerk ($2,400), bonding clerk ($1,800), and three stenographers ($1,500 
each) ; all except the last subject to Board confirmation. The attorney and his as¬ 
sistant must have had five years’ experience in the practice of law in the state, and 
they may not engage in private practice while in office. 7 For the others, three years’ 
experience in their respective fields is the requirement. 

There is also a field force made up of assistants to the Bank Commissioner. The 
maximum number of positions allowed by law in this group is 14. All are filled by 
appointment of the Bank Commissioner and approval of the Banking Board, and all 
incumbents hold office at the pleasure of the Commissioner and the Board. None may 
have any interest in any bank or building and loan association while in office. All 
must be “duly licensed accountants”—a term which means nothing—and all but two 
of them must have had three years’ experience in practical banking. As specified by 
the statutes, these positions include: 8 Two special assistants or supervisors at large 
($3,600 each), to have two years’ previous experience as state or national bank ex¬ 
aminer ; an auditor for the Banking Department, with three years’ previous experience 
as public accountant, auditor, or bank examiner; and ten additional assistants. 

Salary rates as fixed by «law for the auditor and for the ten undesignated as¬ 
sistants are: Entrance salary $2,400; annual increases of $200' each up to the maxi¬ 
mum salary of $3,000. Entrance salary of $3,000 is prescribed in case of appointees with 
two years’ experience as state or national bank examiner. 9 

In the current budget, instead of two special assistants or supervisors' at large, 
there is one “chief bank examiner” at $4,000. Instead of all others in the assistant 
class, there are eight ‘"‘bank examiners,” for whom a total of $18,000 per annum is 
appropriated for each year. 

Proposed Reorganization. As set forth in the statutes, the Internal organization 
of the Banking Department is well conceived, and responsibility for its direction is 
properly placed upon the Bank Commissioner. But the Bank Commissioner is with¬ 
out sufficient authority to meet that responsibility. Thus, he may make appointments 
of subordinate personnel, but only subject to the approval of a body in which he may 
be outvoted three to one. He may remove subordinates only by joint action with 
that body. If favoritism toward the banks does not flourish under this system, it 
is through no fault of the system; for three determined men on the Banking Board 
could dominate the Department. That Department and its regulatory functions exist 
solely for protection of the public. It is no part of its business to “temper the wind 
to the shorn lamb.” Representatives of the banking interests may well have a voice 


1 Stat. 1931, Secs. 9128-29. 

2 Stat. 1931, Sec. 9125. 

s Stat. 1931, Sec. 9123; Laws, 1933, Chap. 157. Sec. 11. 

4 Stat. 1931, Secs. 9168-69, 9172-77, 9179, 9181, 9183-84. 9228; Laws, 1933. Chap. 44 and 
Chap. 157, Sec. 7. 

B Stat. 1931, Sec. 9149. 

®Stat. 1931. Secs. 9163. 

7 Stat. 1931, Sec. 9151-52. 

s Stat. 1931, Sec. 9150. 

*Stat. 1931. Sec. 9150. 


a 



176 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


in the counsels of the Department; but that voice should be advisory, not authorita¬ 
tive, and certainly not controlling. Analysis of the activities of the Department in 
relation to the banks, as conducted by the Commissioner, the Board, and the two to¬ 
gether, gives no hint as to the reason for allocating one duty to one and another to 
another. • It does give ground for the proposal that: 

The Banking Board should be relieved of all of its powers and continued as a purely 
advisory body. 

Appropriations, Expenditures, and Receipts. Financial data relating to the Bank¬ 
ing Department appear belotv: 


Year ' Appropriation 1 Expenditure - Receipts 3 


1930- 31 _ $89,150 $86,113 $17,648 

1931- 32 _ : _ 80,950 74,466 14,846 

1932- 33 _:_ 80,950 75,743 15,982 

1933- 34 _ 60,280 57,071 17,216 

1934- 35 _ _ _ 59,080 - - 


Comparison of income and outgo gives ground for a question as to whether the 
banks are paying an adequate share of the cost of the service maintained for their 
benefit. 

Consideration should be given to the expenditures of the Department in comparison with 
the amounts received from the banks. s 

Reports. There is no legal requirement that the Bank Commissioner shall make 
a report of any kind. On his own initiative, however, Commissioner W. J. Barnett 
issued in 1934 an 86-page pamphlet entitled Oklahoma State Banks and the Administra¬ 
tion of Banking, from May 11, 1932, to February 1, 1934, as shown by report submitted to the 
Governor. This presents in narrative form the official steps taken to meet the banking 
crisis of 1932, the situation at its close, and the need for remedial legislation. There 
are over 70 exhibits; but nothing as to departmental organization and finance. In 
other respects it is a readable informing document. 

An administrative report should be prepared and published at least biennially. 

THE BUILDING AN© LOAN BOARD 

Under the Constitution 4 all state loan companies are subject to regulation by 
a banking Department under the control of a Bank Commissioner. In practice, under 
legislation! in effect since 1925, the regulation of building and loan associations is 
performed by a Building and Loan Board, of which the Bank Commissioner is member 
and chairman, and the Assistant Bank Commissioner is secretary, and, in tne absence 
of his superior, acting chairman. The Banking Board, which, alone or in conjunction 
with the Bank Commissioner has nothing to do with building and loan matters, is an 
integral part of the Banking Department. But it does not appear that the Building 
and Loan Board is regarded as within the Department, although its relations with the 
Bank Commissioner are similar. 

The Board. The Building and Loan Board is composed of four members, three 
of whom are appointed by the Governor and confirmed by the Senate for overlapping 
terms of four years. Eligible for appointment are citizens of the state wh*> have had 
three years’ experience in building and loan association management Compensation 
is $10 per diem when actually engaged. A provision of law that appears unwise requires 
that throughout their terms of office these three members “shall be actively engaged 
in the management of an association " Removal from office may be effected through 
court action, for cause. 0 The fourth member and chairman is the Bank Commissioner 


3 Budget. 

Auditor’s Report. 
“Treasurer's figures. 

‘Art. XIV, Sec. 1. 

B Stat. 1931, Secs. 9842-43. 
•Stat. 1931, Secs. 3447, 9854. 














ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


177 


Monthly meetings at the State Capitol are required, and special meetings are 
subject to the call of the chairman. Three members constitute a quorum, and the 
Bank Commissioner has a vote only in case of a tie. 1 

To the Bank Commissioner, no additional compensation is allowed, nor is additional 
surety required, in connection with his building and loan activities. 

Functions. It is the duty of the Building and Loan Board to maintain general 
supervision and control of all building and loan associations, wherever incorporated, 
doing business in the state. 

Activities of the Board. The Board, by virtue of its power to confirm appoint¬ 
ments made by the Bank Commissioner, has a voice in the selection of examiners. 2 

In its discretion, it approves the by-laws of all building and loan associations. It 
grants or withholds semi-annual certificates of authority or licenses to such associa¬ 
tions to conduct business in the state and collects the fees prescribed by law. It also 
prescribes rules and regulations to govern the conduct of business, and directs the 
manner in which books and records shall be kept. 3 

In addition to the examination which the law requires to be made each year, the 
Board may require additional examinations at its discretion. For all examinations it 
collects the costs prescribed by law ; also a fee based upon the total assets of the 
association invested in the state. The rate of this fee is four cents per thousand dol¬ 
lars. Costs and fees go to the State Treasurer and are kept in a special Building 
and Loan I und; out of which are drawn the moneys necessary for the operation of 
the Board without expense to the state government. 4 

Activities of the Bank Commissioner. In the statutes there are numerous pro¬ 
visions authorizing and directing the activities of the Bank Commissioner in relation 
to building and loan association matters. Few of these are left, however, after the 
elimination of those which have been supplanted by more recent enactments imposing 
like or similar duties upon the Building and Loan Board. The only authority which 
the Commissioner may exercise, without the Board’s approval, would seem to he to 
designate one of the examiners as Building and Loan Supervisor, and appoint a file 
clerk and stenographer, 5 * * to fix the amount and determine the nature of the surety 
deposits which “foreign" associations must keep in the State Treasury,® and to ap¬ 
prove or disapprove inter-association borrowing/ 

With the Board’s approval, the Bank Commissioner may take possession of as¬ 
sociations in distress and conduct them through liquidation or reorganization. 8 

Reorganization Proposed. An, advisory body representing the building and loan 
associations of the state might serve a useful purpose; but it is difficult to see any 
proper use for the present Building and Loan Board. 

All of the authority and responsibility of the Board should be transferred to the Banking 
Department, the Board being continued as an advisory body. 

Internal Organization. Besides the Assistant Bank Commissioner, who serves as 
secretary to the Building and Loan Board and on occasion as its acting chairman, 
the law provides for a personnel of four: Three examiners “to be known as Build¬ 
ing and Loan Auditors”, appointed by the Bank Commissioner and confirmed by the 
Building and Loan Board, and a file clerk and stenographer, appointed without con¬ 
firmation. The Commissioner is directed to designate one of the examiners as build¬ 
ing and loan supervisor. For this position the qualifications are: Citizens of the 


4 Stat. 1931, Secs. 9842-43, 9845. 

2 Stat. 1931, Sec. 9S44; amended Laws, 1933. Chap. 67, Sec. 1. 

3 Stat. 1931, Secs. 9848, 9862, 9846. 

4 Stat. 1931, Sec. 9847; amended Laws, 1933, Chap. 67, Secs. 2-3. At the end of each 
fiscal year a transfer of an amount representing 10 per cent of gross receipts is required from 
this special fund to the General Fund of the state (Laws, 1933, Chap. 88) 

5 Stat. 1931, Sec. 9S44. 

®Stat. 1931, Sec. 9848. 

’Laws, 1933, Chap. 17, Sec. 1. 

8 Stat. 1931, Sec. 9851; Laws, 1933, Chap. 44. 





178 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


state; two years’ experience in the active work of building and loan associations. For 
the other position, no qualifications are specified. The regular statutory salaries for 
these positions are as shown below: 


Building and loan supervisor -$3,600 

Building and loan auditor-2,400-$3,000 

Filing clerk and stenographer-1,500 


For the auditors, the regular salary rates are: Entrance $2,400, with increase 
of $200 for each year of service up to a maximum of $3,000. 1 In the current budget, 
one-half of the salary of the assistant attorney of the Banking Department is made 
chargeable to the Building and Loan Fund. 

Expenditures and Receipts. The costs of the Board are paid out of collections from 
the associations under control upon the theory that the beneficiaries of the service 
should pay the expense. The records show the following: 


Year Expenditure 2 Receipts 3 


1930 - 31 _ $ 16,909 $ 16,100 

1931 - 32 _ 16,104 16,000 

1932 - 33 _ 15,585 16,000 

1933 - 34 _ 17,404 18,299 


Reports. A recent law requires the Building and Loan Board to file with the 
Governor and the State Auditor, a financial report at the end of each fiscal year; also 
to submit interim reports on reouest. 4 No administrative report is required. 

THE OKLAHOMA SECURITIES COMMISSION 

A “blue sky” law was passed in 1919 and for its enforcement a State Issues Com¬ 
mission was set up, its members being the Bank Commissioner, the State Auditor, and 
the Secretary of State. The successor to that organization, with membership un¬ 
changed, is the Oklahoma Securities Commission, which operates under legislation 
enacted in 1931 and amended in 1933. 5 * 

The Commission elects its own chairman, now the Bank Commissioner, and vice- 
chairman, and appoints and directs its administrative personnel. It maintains an 
office in the State Capitol, where its records must be kept and where it holds its 
meetings. Meetings must be held at least weekly; two members constitute a quorum 
for the'conduct of business, and a full record of acts and proceedings is required. 8 

Functions. It is the duty of the Securities Commission to protect the people of 
the state from fraud in their purchases of securities’. This it does through the ex¬ 
ercise of a dual control; over issues and over particular exchanges, dealers and 
salesmen. Its authority as set forth in the law extends to matters of ex¬ 
treme detail, tuid its procedure, as there defined, is prescribed with great par¬ 
ticularity. This is also true of the administrative officer, the Commissioner. In 
some instances the administrative reasons for the distribution of powers and duties 
between the Commission and the Commissioner are not readily apparent to one who 
reads the law; however, in practice, it is the Commissioner who must act, and all of 
his actions are subject to the direction and approval of the Commission. 

Control of Security Issues. The law itself specifies classes of securities and vari¬ 
eties of sales methods or transactions which, because of their nature, are exempt from 
its control. In the case, however, of securities dealt in on any recognized or responsible 
stock exchange, this exemption is subject at all times to approval of the Commission, 
both of the exchange itself and of any particular security listed thereon. 7 

In its office the Commission maintains a “Register of Securities” in which are 
entered the orders which the Commission or the Commissioner makes with reference 

J Stat. 1931, Sec. 9844; amended Laws, 1933, Chap. 67, Sec. 1. 

Auditor’s Report. 

treasury figures. 

4 Laws, 1933, Chap. 8S. 

'Stat. 1931, Secs. 4897-4917; Laws, 1933, Chap. 121. 

"Stat. 1931, Sec. 4898. 

’Laws, 1933, Chap. 121, Secs. 1-2. . ‘ 













ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


179 


io any issue of securities. This record is open to public inspection. Registration in 
this record is by “notification” in the case of matured classes of issues (defined in 
the law) or by “qualification” in other cases. Whichever type it may he, an issue is 
registered only in case the Commissioner so orders after the examination of the in¬ 
formation and evidence filed to prove its eligibility and upon the payment of the fees 
required by law. The Commissioner also has authority to revoke registrations and 
it is his duty to see to it that eligibility is constantly maintained. 1 

Control of Dealers and Salesmen. There is another register, the “Register of Deal¬ 
ers and Salesmen,” also open to public inspection. Entry of names in this record is 
conditioned upon the presentation of information satisfactory to the Commissioner, 
the filing of a bond of, $5,000, and] the payment of the legal fee, which must be renewed 
each calendar year. Registrants must give notification of any contemplated offerings 
of any issue, and their registration is subject to suspension by the Commissioner and 
to revocation by the Commission. 2 

Internal Organization. The positions and compensation of the administrative per¬ 
sonnel, as fixed by law, are: A Commissioner at an annual salary of $5,000, and a 
Deputy Commissioner at $1,SOO; an auditor at $2,500, and a stenographer-clerk at $1,- 
800. Both the Commissioner and his deputy must file a surety bond to the amount 
of $10,000. 3 

In the budget for the biennium 1934-35, no provision was made for a Deputy Com¬ 
missioner. 4 

Appropriations, Expenditures, and Receipts. Financial information over a period 
of years is made available below: 


Year Appropriation 5 Expenditure 6 Receipts 6 


1931 - 32 _ $ 11,550 $ 10,544 $ 23,317 

1932 - 33 _ 10,300 7,841 8,476 

1933 - 34 _ 7,700 7,335 7,576 

1934 - 35 _ 7,700 _ _ 


Report. An annual report to the Governor is required. 7 

Proposed Reorganization. Since the matter of the issuance of securities has been 
brought under the control of the federal government, the work of state blue-sky or¬ 
ganizations must necessarily be less extensive and less important. Granted, that there 
is a need for state control of the sale of securities within the state, this can he done 
by a subdivision of the Banking Department. There is no need for an ex-officio type 
of organization, with its tendency to concern itself unduly with matters of patronage., 

The Oklahoma Securities Commission should be abolished and its subordinate personnel, 
powers, and ditties be transferred to the Banking Department. 

SECRETARY OF STATE 

A part of the functions of the Secretary of State lie within the field of business 
regulation; and, in a previous chapter, it is recommended that, if and when the Con¬ 
stitution is amended to eliminate the Secretary of State, his functions relative to in¬ 
corporations be transferred to the Banking Department. 

THE CORPORATION COMMISSION 

Created by the Constitution, the Corporation Commission is a body of three mem¬ 
bers chosen by the electorate for overlapping terms of six years. To be eligible for 
election a candidate must be 30 years old, a state resident for two years, and a voter. 


'Laws, 1933, Cliap. 121, Secs. 3-5. 

Taws, 1933, Chap. 121, Sec. 6. 

3 Stat. 1931, Sec. 4898. 

Taws, 1933, Chap. 5. 

“Budget. 

"Treasurer’s figures. 

7 Stat. 1931, Sec. 4899. 











ISO ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 

Interest in any variety of public service enterprise subject to Commission regulation 
is a disqualification. 

From its own membership the Commission elects a chairman; it also appoints a 
secretary. A majority of the members constitute a quorum, and concurrence of such 
majority is essential to a decision. 1 The present statutory salary rate is $4,000. 2 

By the Constitution and by the statute the Commission has been granted great 
powers—legislative executive, administrative, and judicial—and wide jurisdiction, and 
both may be extended by legislation. It acts both as a tribunal and as an agency of 
investigation. It represents the interest of the state in matters coming before the In¬ 
terstate Commerce Commission. It plays a part in the collection of state revenues. 
It may concern itself with the affairs of any type of business which the lawmakers 
declare to be a “public; utilityin other words, business constituting a. virtual monop¬ 
oly or of public consequence through supply, demand, or price. By statute, therefore, 
the Commission may be authorized to regulate any variety of business activity which 
the state itself may regulate under its police power. 3 By statute, also, rhe legislature 
may alter, amend, revise, or repeal Sections 18 to 34 inclusive, Article IX of the Con¬ 
stitution, which relate to the powers, duties, and procedure of the Corporation Com¬ 
mission. 4 

Functions. Briefly, it is the function of the Corporation Commission, on behalf 
of the state, to control, regulate, and supervise the affairs of privately-owned enter¬ 
prises which have been declared by statute to be affected with a public interest, in¬ 
cluding those which have to do with any variety or phase of transportation; transmis¬ 
sion ; communication; light, heat, and power; water supply and power; etc. It is 
charged with the enforcement of anti-monopoly laws, and thus with the control of 
cotton gins. It is also responsible for the conservation of petroleum and natural gas. 

Despite the imposing array of statutes which the Commission is called upon to- 
enforce and the complexity of the subject matter coming under its jurisdiction, its ob¬ 
jective is simple,—to protect the interest of the public generally and to safeguard 
the user of essential services from exploitation, inadequate performance, or waste. 

Activities. It is a matter of common knowledge that the Commission concerns 
itself with such questions as the “public convenience and necessity” of projected public 
service undertakings, and with a variety of matters with relation to enterprises al¬ 
ready established. It is concerned with routes and connections; physical plant and 
equipment; service and safety; rates, classifications, and charges; management and 
inter-corporate relationships; accounts and reports; finance and financial liability; 
property values and taxation. To a certain extent (telephone lines and cottorn gins) 
it concerns itself with the probable effect of an additional competitor in an occupied 
place, area, or route; it gives attention to the physical and financial interrelations of 
commercial motor vehicles and the public highway system; but it does not appear, 
nor is it required, to direct its efforts toward the development of an integrated (or 
at least coordinated) transportation system to serve the state as a whole. 

The Commission’s work in connection with public utilities, such as cotton gins, 
which have been thus defined by legislative fiat calls for no particular comment with 
reference to activities, however interesting it may be as evidence of an advanced out¬ 
look in the field of social control. But its conservation activities are out of the or¬ 
dinary. 

Since 191 < the Coipoiation Commission has been endowed with authority to en¬ 
force the laws of the state for the conservation of petroleum and natural gas. This 
was done because the Commission, as an administrative tribunal, was thought to be 
more suitable for the handling of enforcement cases than the state courts 

The Commission is responsible for the plugging of abandoned wells, and for the 
supervision of drilling of new ones. It supervises ,*well operation and pipe line dis- 
ribution, fixes standards of quality and safety for petroleum products, and conducts 

'Const., Art. IX, Secs. 15-17, 18a. 

'Laws, 1933, Chap. 138. 

*Stat. 1931, Sec. 12805. 

‘Const., Art. IX, Sec. 35. 





ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


181 


an inspection service to see that standards are maintained. 1 It is also the agency for 
enforcement of measures calculated to keep oil production within the capacity of 
facilities for handling and marketing and within the range of reasonable market de¬ 
mand. 2 It is particularly charged with the regulation of oil production from common 
sources of supply ; 3 in this matter its authority has been redefined and its organization 
has been extended by the Preparation Act of 1933. 4 5 

From the point of view of finance, the oil and gas activities of the Commission 
are the most important; second rank is held by its appraisal and audit work; third 
rank, by litigation. 

Internal Organization. The internal organization, with the salaries of officials and 
employees, i s as follows: 

Office of the Commission : 

Secretary, in charge, appointment by Commission, 6 * * $3,000 
Filing clerk, $1,800 
Stenographer, $1,500 
Stenographer and law clerk, $l,S0O 

Sundry extra help, to the annual amount of $1,200, by current budget Marshal, 

$1,200 

Bureau of Law (also “Legal Department”) : 

Attorney, in charge, $4,000 
Two court reporters, $2,100 each 
Court reporter, $2,100® 

Law stenographer, $l,S0O 
Railroad Rate Department: 

Special counsel and freight rate expert, $4,000 
Two stenographers, one, $1,500; one, $1,200 
Two rate clerks, $2,100 each 
Two clerks, one $2,100, one $1,500 

Bureau of Accounting (also “Accounting Department” and “Bureau of Accounts”) ; 
Auditor, in charge, $3,000 
Assistant auditor, $2,100' 

Five accountants, one $3,000; four, $2500" 

Stenographer, $1,500 

Auditor, or Valuation Expert. Compensation fixed by Commission: 

Two engineers, one, $3,600; one, $2,280.' 

Six accountants, one, $3,600; one, $2,400; four, $2,100 
Four clerks, one, $2,2S0; two, $1,500; one, $1,200 
Five stenographers, one, $1,500; four. $1,200 
Dictaphone operator, $1,200 
Switchboard operator, $1,200 
Bureau of Engineering (also “Engineering Division”) : 9 

Railroad engineer; telephone engineer; and gas and electric engineer, respectively, 
in charge, $3,000 each 
Engineering clerk, $1,800 
Draftsman, $1,800 

Bureau for the Regulation of Common Carriers (also “Railroad Rate and Traffic Bu¬ 
reau”) : 

Rate and traffic expert, in charge, $3,600 
Rate and traffic clerk, $2,500 
Stenographer, $1,500 


5 Stat. 1931, Secs. 3669-75, 11535-49, 11566-74, 11595; Laws, 1933, Chap. 140. 

3 Stat. 1931, Secs. 11566-67. 

3 Stat. 1931, Secs. 11568-74. 

4 Laws, 1933, Chap. 131. 

5 Const., Art. IX. Sec. 18a. 

'Authorized but none in current budget. 

T None in current budget. 

8 Authorized but none in current budget. 

“Three so-called “departmentsRailroad Engineering, Telephone, and Gas and Electric. 




182 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


Bureau for the Conservation of Oil and Gas (also “Oil and Gas Department,” and “Oil 
and Gas Conservation Bureau”) : 

Chief Conservation Officer (also “Agent”) and ex-officio State Oil Inspector, in 
charge, 1 $3,600 
Chemist, $2,400 

Chief clerk and stenographer, $1,800 
Two stenographers, $1,500 each 2 
Filing clerk, $1,200 

Eleven conservation officers (“Agents”), $2,700 each 3 
122 oil inspectors, 1 compensation, fees 
Proration Division : 5 

Petroleum umpire, $0,000 
Assistant petroleum umpire, $4,800 
Proration attorney, $6,000 

30 deputy proration umpires, five, $3,000; 25, $1,800 
Six stenographers, $1,500 each 
Chief clerk, $2,700 
Five clerks, $1,500 each 
Two reporters, $2,400 each 
Two stenographers, $1,500 each 
Two clerks, $1,500 each 
Well Log Division (also “Department”) : 

Chief clerk, in charge, $1,090 
Clerk, $1,200 
Stenographer, $1,200 

Bureau of Collection of Corporation Taxes (also “Corporation Tax Department,” and 
“Corporation Record Department”) : 

Chief clerk, $2,500 
Stenographer, $1,500“ 

Motor Division (also “Motor Bus Division,” “Motor Bus Bureau,” and “Motor Vehicle 
Department”) : 

Director, $2,400 

Department of Cotton Gin Utilities (also “Cotton Gin Department,” “Cotton Gin Bureau,” 
and “Cotton Division”) 

Inspector, in charge, $2,000 
Three inspectors, $2,000 each 
Stenographer, $1,200 


Appropriations and 

Receipts. A four-year 

record of 

appropriations, 

classified by 

type of service, is given in 

the following table 

• 



Service 


1931-32 

1932-33 

1933-34 

1934-35 

Administration - 


__ _$ 48,300 

$ 48,S00 

$ 35,000 

$ 35,000 

Law - 


12,100 

12,100 

8,200 

8,200 

Rate Litigation - 


_ _ _ 20,000 

20,000 

18,000 

18,000 

Accounting_ 


9,600 

9,600 

3,600 

3,600 

Appraisal and Audit- 


. _ _ 50,000 

50,000 

5Q„000 

50,000 

Engineering _ 


17,100 

17,100 

13,800 

13,800 

Rates and Traffic - 


_ _ 9,400 

9,400 

6,000 

6,000 

Oil and Gas Conservation- 


_ 39,000 

39,000 

17,700 

17,700 

Oil and Gas Conservation 


_ 22,500 

22,500 

12,500 

12,500 

Well Log - 


. _ 12,000 

12,000 

5,500 

5,500 

Corporation Tax- 


_ . 2,500 

2,500 

1,500 

1,500 

Motor Vehicle _ 


_ 3,900 

3,900 

2,000 

2,000 

Cotton Gin _ 


9,600 

9,600 

— 

— 

Total 


—$256,000 

$256,500 

$173,800 

$173,800 

In connection with 

the 

regulation of motor 

carriers and of commercial motor ve- 


’Appointment by Commission with approval of Governor (Stat. 1931, Secs. 3609, 11591). 
Authorized (Stat. 1931, Sec. 34t>0) ; current budget provides for one. 

“Eleven authorized; five provided for in current budget. 

Appointment by Commission with Governor’s approval. 

“The positions named are non-budget positions, financed through the Proration Fffind set 
up in 1933 (Laws, 1933. Chaps. 131 and 132). All salaries are at maximum rates. 
‘Authorized (Sat. 1931, Sec. 3490) ; none in current budget. 

“None in current budget. 



























ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


183 


hides, the statutes require a filing fee for each application for a certificate or permit. 
These fees are received by the Corporation Commission and deposited in a Motor Ve¬ 
hicle Act Enforcement Fund, established in 1929. Prior to 19,33 rbere were taxes and 
license fees. 1 Well log transcript fees are collected by the Commission under authority 
of Section 3624 of the Compiled Oklahoma Statutes. 

Following is a summary statement off receipts covering the last four fiscal years, 
from Treasury figures: 

Oil and Gas Inspection, 


Year Motor Fees Well Log Fees Ooton Gin, and 


Miscellaneous Fees 


1930 - 31 _ $1 70,679 2 $14,712 $125,384 

1931- 32 ___ 9,717 7,895 94,345 

1932- 33 I_I__ _ - _ 14,695 7,548 78,024 

1933 - 34 ___ 62,473 7,473 86,574 s 


Reports. An annual report is required by the Constitution, 4 . . every such gen¬ 
eral order, rule, regulation, or requirement, made by the Commission, shall be pub¬ 
lished at length, . . . and shall also, so. long as it remains in force, be published in 
each subsequent annual report of the Commission.” 

If this requirement were literally complied with, the annual report would soon 
grow to grotesque proportions. As it is, the report for 1934 is a cloth bound volume 
of 970 pages, the last 363 pages of which represent the new matter added during that 
year. It includes a letter of transmittal, a summary financial statement, and an or¬ 
ganization statement, each of a single page. Its contents follow the chronological 
order, but there is a detailed subject index which seems to be well done. The volume 
is essentially a legal record and guide; not an administrative report. 

Routine orders, etc., of the Commission are scheduled; not given in full as the 
Constitution requires. The remedy is a legislative amendment to the Constitution, as 
provided for by Section 35 of Article IX. 

Appraisal of the Commission. It, would not be possible, without a special and pro¬ 
longed study, to evaluate the work of the Corporation Commission in such a way as 
to judge whether the present organization is or is not the most appropriate under 
conditions existing in Oklahoma. There are believed to be shortcomings in the func¬ 
tioning of the Commission. It is not certain that these shortcomings would be rem¬ 
edied by amending the Constitution so as to make the Commission appointive. Minor 
changes needed are: (1) Abolition of the Bureau of Co lect ou of CoT'u^’nB^n Taxes 5 
and (2) amendment of that part of Section 18 of Article IX of the Constitution (as 
provided in Section 35 of the same Article) so as to enable the Commission to issue 
its orders, etc., without the present excessive burden of expense. 

In a preceding chapter dealing with law enforcement, the oil inspectors in the 
Bureau for the Conservation of Oil and Gas have been discussed and a recommenda¬ 
tion is made for the transfer of their work to the proposed Department of Safety. 
Attention has also been given in that chapter to the legal staff of the Corporation 
Commission. 


’Laws, 1933, Chap. 156, Sec. 2. 
includes taxes. 

’Excludes proration fines, $1,021. 
“Art. IX, Sec. 18. 

’Stat. 1931. Sec. 3496. 
















CHAPTER XII 

LABOR ADMINISTRATION 

In Oklahoma the functions of the state in the field of labor administration are 
distributed among four separate and structurally unrelated organizations: (1) the 
Department of Labor; (2) the Department of Mines and Mining; (3) the Industrial 
Commission, which includes the State Insurance Fund; and (4) the Department oi 
Public Instruction, which handles vocational education, including trade and indus¬ 
trial education and rehabilitation of industrial workers. 

These general functions are seven in number as follows: 

1. Promotion of safety in industry. 

2. Administration of the compensation system for workmen injured in industry. 

3. Rehabilitation of injured workers so that they may become self-supporting or con¬ 
tribute materially to their own support. 

4. Training of citizens, both minors and adults for vocations. 

5. Operation of public employment offices. 

6. Maintaining a mediating service that may be used in the settlement of industrial 
disputes, especially strikes and threatened strikes. 

7. Collection and dissemination of labor statistics. 

THE DEPARTMENT OF LABOR 

The Constitution in Article VI, Section 20, provides for a Department of Labor 
to be under a Commissioner of Labor to be elected by the people for a term of four 
years. Section 21 directs the legislature to create in the Department a Board of Ar¬ 
bitration and Conciliation of which the Commissioner shall be ex-officio chairman. The 
following duties were by statute assigned to the Commissioner in 1911 :* 

1. To carry into effect all laws in relation to labor passed by the legislature in regard 
to transportation, mechanical and manufacturing industries of the state. 

2. To supervise the work of the different branches of his department, which shall be 
divided into four bureaus, as follows: Statistics ; Arbitration and Conciliation; Free Em¬ 
ployment ; and Factory Inspection. 

3. To appoint all officers and employees of the department. 

4. To collect, assort and systematize reports of all persons, firms, or corporations re¬ 
quired to report to the Commissioner of Labor annually, and present the same to the Legis¬ 
lature at the following session thereof. 

5. To compile statistical detailed reports relating to the commercial, industrial, educa¬ 
tional and sanitary conditions of the people, included in the mining, transportation, trans¬ 
mission, commercial, mechanical and manufacturing industries of the state. 

6. To administer oaths, issue subpoenas for the attendance of witnesses and take testi¬ 
mony “in all matters relating to the proper enforcement of all laws over which he has super¬ 
vision” under this Act. 

Appropriations ami Expenditures. Appropriations for the Department for the fiscal 
year ending June 30, 1933, were $40,315 and expenditures, $38,055.23. For the follow¬ 
ing fiscal year, appropriations were reduced to $26,021 and expenditures amounted to 
$25,88S.83. 2 

The organization of the Department of Labor, with the salaries of personnel, as 
of January 1, 1935 was as follows: 

Statutory Appropri- 
Salary ated Salary 

Administrative Office : 

Commissioner -_-$3,600 $2,880 

Assistant Commissioner ___ 1.800 1,620 

2 Stenographic Clerks - 1,200 1.200 


3 Laws, 1911, Chap. 128. Sec. 1. 

Appropriations and expenditures are itemized in the 1934 report of the Commissioner of 

Labor. 






ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


185 


Statutory 


Bureau of Factory Inspection : 

Chief Factory Inspector—McQueen _1,620 

Deputy Factory Inspector—Tulsa _1_1,500 

State Boiler Inspector-—Muskogee _1,500 

Division of Women and Children in Industry : 

Inspector—Oklahoma City _1,500 

Bureau of Labor Statistics : 

Statistician -$1,500 


Bureau of Free Employment (Affiliated with U. S. Employment 
Service) : Statistical Supervisor. State Capitol, paid direct by 


Federal Government. District Office No. 1 Convention Hali, 

Enid. 

Manager -1,200 

Statistical Clerk—paid direct by Federal Government. District 
Office No. 2, 101 W. Broadway, Muskogee 

Manager Men’s Division _1,200 

Manager Women’s Division—Paid from matched Federal Funds 
Statistical Clerk paid direct by Federal Government, District 
Office No. 3, 23-25 N. Dewey, Oklahoma City 

Manager Men’s Division _1,500 

Manager Women’s Division—Paid from matched Federal funds 


Veterans Placement Officer—Paid direct by Federal government 
Stenographer Veterans Placement—Paid by matched Federal 
funds. District Office No. 4. 10-12 S. Boston Street, Tulsa 

Manager Men’s Division—Paid from State funds _1,200 

Manager Women’s Division—Paid from matched Federal funds 
2 Statistical Clerks — Paid direct by Federal government. Com¬ 
mercial and Professional Division. 212 Federal Bldg., Tulsa 
Manager—Paid by matched Federal funds 
State Board of Arbitration and Conciliation : 

Commissioner of Labor, ex-officio chairman by constitutional 
provision 

Assistant Commissioner of Labor, Secretary 
Three members nominated by the Commissioner of Labor and 
appointed by the Governor with the approval of the Senate 
for four-year terms 

Three members appointed by the Governor with the approval 
of the Senate for four-year terms. 


Appropri¬ 
ated Salary 

1,500 

1,320 

1,320 

1,320 

$1,200 


1,200 


1,200 


1,200 


1,200 


The Free Employment Service. In the free employment service on January 1, 
1935, as shown above, there were 17 positions, of which 4 were supplied by state ap¬ 
propriations, 5 by the federal government through the matching fund process, and 8 
by the federal government direct. In addition to this cooperation with the state, the 
federal government has been maintaining at many points in the state, national re¬ 
employment offices, through which were recruited workers for the National Public 
Works Administration. Thus the free employment service at present in operation in 
Oklahoma is supported mainly by the federal government. 

The present arrangements for free employment offices in Oklahoma is entirely on 
a temporary basis which will expire July 1, 1935 unless the legislature prior to that 
time accepts the terms of the national Wagner Peyser Act. Under the terms of this 
act, which was approved in June, 1933, if the legislature of a state was not in session 
the Governor could accept the act provisionally and get immediate advantage of fed¬ 
eral aid, but the arrangement could not be continued' beyond July 1, 1935 unless the 
legislature confirmed the provisional acceptance by the Governor. At present (March, 
1935) Oklahoma has only provisional acceptance by the Governor. Then, too, the fed¬ 
eral government is planning to discontinue its nationally supported reemployment offi¬ 
ces and to do all employment work through the regular state employment services. 
Thus unless the legislature of Oklahoma takes action, the great bulk of the free em¬ 
ployment work now done by the state wall be discontinued July 1, 1935. 

Under the terms of the Wagner Peyser Act. payment of grants in aid by the fed¬ 
eral government is contingent, upon an appropriation of a like sum for the employment 











186 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


service by the state government from state funds. The amount that the state oi 
Oklahoma can get for the fiscal year 1935 by matching the federal appropriation is 
initially $58,590. If a state does not match the federal appropriation, the part of its 
federal allotment that it does not use becomes available to the states chat are co¬ 
operating with the national government and are 'willing to match the federal grant. 
At present Oklahoma h.Us put up approximately $8,000 toward matching the federal 
grant in aid on a temporary basis. 

Factory Inspection!. The factory inspectors, during the last two fiscal years, made 
a total of 3,516 inspections, covering 29,526 employees, and 8,338 orders were issued 
for correcting defects in machinery and equipment. In connection with these figures, 
the Commissioner of Labor reports that at present the Department has no state owned 
ears, and an insufficient appropriation to permit of paying the inspectors as much as 
five cents per mile for the use of their own cars. The one state boiler inspector made 
during the two years 1,720 external inspections, 210 reinspections, and 498 hydrostatic 
pressure tests; 2,62S orders were issued to correct defective fittings and appliances 
and 847 to replace or repair defective safety valves; 66 boilers were permanently con¬ 
demned and 106 condemned pending repairs. During the same period, the one woman 
factory inspector visited 1,507 establishments and made 2,191 special investigations, 
with respect to the employment of women; and, in the enforcement of the child labor 
law, she visited 1,169 establishments, issued 82 orders to secure certificates, 108 eight- 
hour orders, and 49 orders to cease employing, and made 667 special investigations. 

Bureau of Labor Statistics. The Bureau of Labor Statistics consists of one em¬ 
ployee at $1,200. She prepares a monthly bulletin on the “Oklahoma Labor Market'’ 
.which shows the number of employees, the rate of wages and the total amount of pay¬ 
rolls for 25 selected industries, from which data a study of trends is made. A cost 
of living index for Oklahoma is also maintained through the use of the figures on 
wholesale and retail prices secured from the United States Bureau of Labor Statistics. 
Statistics are also compiled regarding the work of the employment service, but tlxe 
bulk of this work is done by employees furnished by the federal government. The 
publication of a monthly bulletin is not specifically authorized by law and the law 
under which the data are secured requires the establishments to report annually and 
not monthly. Unquestionably the practice of the Commissioner in preparing and pub¬ 
lishing a monthly bulletin gives a far more useful service. He could do a better job 
if the law requiring reports were amended to provide for monthly reports. 

The State Board of Arbitration and Conciliation. The Board of Arbitration and 
Conciliation is! like a fire department. It acts only in case of an emergency-, but it 
is an excellent thing to have always available. 

General Comment. In general, the Department of Labor of Oklahoma appears to 
be excellently administered. Its personnel, because of the continuity of service that 
has prevailed, seem , to know their work and to devote themselves to it quietly 
and without confusion. The annual report of the Commissioner deserves special com¬ 
mendation. The safety manuals are also well done. The state employment office at 
Oklahoma City was visited and inspected. It also merits favorable report on everything 
except the physical quarters. If the state is to furnish an employment service to all 
classes of employees and to all classes of employers, it should be housed in a better 
building in a better location. 

When times are better, consideration should be given to the salaries in the De¬ 
partment of Labor. They are at present low; but the Commissioner has apparently 
been able to secure and keep a staff of reasonably competent employees. The only 
professionally trained statistician and economist on the staff is in the employment 
service and is paid for entirely by the national government. 

THE DEPARTMENT OF MINES 

The Constitution, (Art. VI, Sec. 25) provides for a “Chief Inspector of Mines, Oil 
and Gas”, to be known as “th e Chief Mine Inspector”, to be elected by the people for 
a term of four years; this official to have had at the time of his election eight years 
actual experience as a practical miner; to which the legislature has added that he 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


187 


shall be a citizen of the United States, a resident of Oklahoma for two years next 
prior to his election, of temperate habits, of good repute and of personal integrity, and 
at least 35 years of age. The Constitution (Art. VI, Sec. 26) directs the legislature 
to create mining districts and to provide for the appointment or election of assistant 
inspectors and to define their qualifications and duties and fix their compensations, 
these to be under the general control of the chief mine inspector. The legislature has 
created foutr' mining districts and has provided for four assistant or district mine in¬ 
spectors, who are elected by the people for a term of four years. They are required 
to have the same qualifications as the chief mine inspector. 

The legislature has also provided for a State Mining Board of five, appointed by 

the Governor with the consent of the Senate for a term of four years. The law pro¬ 
vides that of the five members* two shall be practical miners, one a practical coal 

mining engineer, one a practical coal hoisting engineer, and one a coal operator, and 

all citizens of the United States and of Oklahoma. Their duties are to examine ap¬ 
plicants for certificates of competency to fill positions of hoisting engineers, fire 
bosses, foremen and superintendents of the coal mines of Oklahoma. A candidate for 
the elected office of chief mine inspector or of district mine inspector must hiold a 
certificate of competency issued by the State Mining Board. 

The duties of the chief mine inspector and the district mine inspectors are 
to examine all mines at least every three months, with special reference to the work 
and machinery used therein, the state and condition of the mines with respect to 
ventilation, circulation, and condition of the air, drainage and all other things that 
have a bearing on the security of life and health of miners. 

The salary of the chief mine inspector is $3,600, and that of the district mine 
inspectors $2,400 each. The chief mine inspector has his office at the State Capitol 
where he has a secretary whose salary is $2,400. 

The members of the Mining Board receive $6.00 per day when actually employed, 
and their actual and necessary expenses, but the lalvv provides that they shall not be 
paid for more than 20 days in any one quarter of a year, except that the secretary of 
the board may be paid for not to exceed 25 days in a quarter. 

As a minor matter, it should be noted that a small saving could be made in the 
cost of printing the annual report of the Department of Mines and Mining by giving 
descriptions of mines, mining equipment, condition and so forth in tabular form Instead 
of in running descriptions. Not only would considerable printing be saved, but the 
material could be more easily used. The present form is probably used because now 
each elected assistant mine inspector makes a report, which is printed in the annual 
report, probably about as he prepares it. 

Comments. Not valid reason seemsi now to exist for having thje chief mine inspector 1 
a constitutional officer elected by the people, nor for having the four assistant mine 
inspectors elected. The present system unnecessarily lengthens the ballot, increases 
the cost of elections, and compels these technical officials to participate in political 
campaigns. Mine inspection is a ministerial act and does not, or should not, involve 
policy or politics. The Constitution specifically provides that the assistant mine in¬ 
spectors “shall be under the general control of the Chief Mine Inspector” yet they 
are, like himself, elected by the people, which means that his control can only be 
nominal. Apparently in the past this division of authority and responsibility has 
caused some administrative difficulties. 

THE STATE INDUSTRIAL COMMISSION 

The function of the State Industrial Commission is to administer the Oklahoma 
Workmen’s Compensation Law and the State Insurance Fund, which is a state owned 
and operated system in which private employers may insure against the liabilities 
imposed upon them by workmen's compensation law. The fund is in competition with 
such private insurance carriers as are licensed to do a compensation business in the 
state. 

The State Industrial Commission consists of three commissioners appointed by the 
Governor and confirmed by the Senate for overlapping terms of six years. The only 
qualifications required are that they shall have been citizens of the state for over two 


188 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


years next preceding appointment, qualified voters, and not less than 30 years of age. 
The statutory salary of the chairman is $4,200, and of the other two members $3,900. 
They are required to devote their entire time to the duties of their offices and are 
prohibited from holding any other office of trust or profit, from engaging in any occu¬ 
pation or business interfering or inconsistent with their duties, and from serving on or 
under any committee of a political party. 

The Governor may remove any Commissioner for inefficiency, neglect of duty or mis¬ 
conduct, giving him a copy of the charges and an opportunity of being publicly heard in 
person or by counsel, upon not less than ten days’ notice. If such Commissioner be removed 
the Governor shall file with the office of the Secretary of State a complete statement of all 
charges made against him and a complete record of his proceedings and his findings thereon. 

The staff of the Industrial Commission is as follows: 


Chairman _ 

Two Commissioners _ 

Secretary of the Commission 

Five Inspectors _ 

Chief Reporter _ 

Five Reporters _ 

Three Assistant Reporters_ 

Statistician _ 

Property Clerk and Bookkeeper 

Lccket Cierk _ 

Assistant Docket Clerk _ 

Claim Clerk _ 

Assistant Claim Clerk _ 

Chief File Clerk _ 

Three Assistant File Clerks_ 

Insurance Clerk _ 

Three Stenographers _ 

Appeal Clerk (not in statute) 


Statutory 

Salary 

Appr jpriaU j'i-Ftscal 
Year Ending June 30, 
1935 

$4,200 

$3,800 

3,900 

3,660 each 

2,400 

2,100 

2,100 

1,800 

1,800 

1,500 

1,500) 

__ 

1,320) 

_ 

l.SOO 

1.320 

1,500 

1,200 

1,500 

1,200 

1,500 

not provided 

1,500 

1,200 

1,200 

not provided 

1,500 

1,200 

1,200 

1,200 each 

1,200 

1,200 

1,200 

1,200 each 


1,200 


The appropriation for the fiscal year ending .Tune 30, 1935 provided $45,920 for the 
salaries of the positions named, and in addition for general repairs, $200; for travel¬ 
ing, $4,500; for communication $2,000; for office supplies $2,000; for office equipment 
$1,000; and for paid premiums $100, making a total for the fiscal year of $55,720. 

The official statistics indicating the volume of work done by the Industrial Com¬ 
mission for the calendar year 1934 are as follows: 


Number of cases filed ___6,793 

Number of cases heard _7,002 

Notices of injury filed _.___21,196 

Number of awards _9,073 


Amount of awards on hearings, agreements, and joint petitions 
Amount of awards on cases from the Supreme Court_ 

Total awards_ 


$1,597,066.43 

107,010.99 

$1,704,077.42 


The principal office of the Commission is by law located in the Capitol. The 
Commission is, however, authorized by law to make investigations or hold hearings at 
any place within the state. 

Each Commissioner and each inspector, when so authorized by the Commission, may 
conduct hearings, and exercise the necessary powers incidental thereto, such as ad¬ 
ministering oaths,. issuing subpoenas, compelling the attendance of witnesses, and the 
production of books and papers and so on. The awards and findings of a single com¬ 
missioner or of an inspector authorized to act as a commissioner, to be effective, must 
be approved and confirmed by the Commission. Two members constitute by law a 
quorum, and the Commission can by law continue to function if one position is vacant. 

Safety Work. One of the objects ordinarily sought in a workmen’s compensation 
law is the promotion of industrial safety and the prevention of industrial accidents. 
In Oklahoma factory inspection is in the Department of Labor, and mine inspection 
In the Department of Mines. The Industrial Commission conducts no safety work. 
It does get reports of industrial accidents and the number of reported accidents is 
counted, 21,196 in the calendar year 1934. It does nothing more than count them, 
making no analysis of them, and does not attempt to use them in the promotion of 
industrial safety. 






























ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


189 


Lawyers’ Fees. Another object of the workmen’s compensation layc is to provide 
an inexpensive method by which workmen injured in industry can get prompt set- 
clement of their claims, without elaborate procedure. It was hoped that the awards 
would go to the injured workman and not to the lawyers who represented him 
before the Commission. The general impression in Oklahoma seems to be that the use 
of lawyers has materially increased in recent years. In cases where the awards 
are small or where the case is sharply contested, lawyers have been a lowed as much 
as a quarter of the total award. Unfortunately, the reports of the Commission throw 
no light on this subject. They do not give the number of cases in which the claimant 
represented himself and the number of cases in which he was represented by counsel. 
They do not show the amount of lawyers’ fees. Thus, neither the citizens of the 
state, nor the Governor or the legislature have any real data on this important sub¬ 
ject. The facts are probably in the files, but they should be regularly and system¬ 
atically compiled, so that anyone can tell quickly whether there is any truth to the 
charge frequently heard that the compensation law in this state has tended to be¬ 
come a legal racket. 

Medical Testimony. The Commission employs no medical examiners and has no 
appropriation by which it can from time to time employ independent examiners. 
In case after case the testimony of the medical experts for the insurance carriers 
is diametrically opposed to that of the medical experts for the claimant. The best 
that the Commission can do at present is to have the claimant examined again by a 
third medical man who is more or less acceptable to the parties to the case and to 
the Commission. Seme careful observers believe that the present system is inimical 
to the interests of the claimant. A claimant needs a medical expert once; but 
insurance carriers need them time and time again and naturally want medical testi¬ 
mony thiat is conservative in the matter of the extent, nature, and, probable duration 
of the injury. These matters often cannot be determined with precision. There is 
always room for the exercise of professional judgment. Always present is the dan¬ 
ger that the claimant is faking or malingering. Company physicians see enough of 
that sort of thing so that they become rather* inclined to give! the company the benefit of 
the doubt. The claimant has to find a medical man who is not a company man and his 
choice is rather restricted. He may get a medical man whose reputation at the 
Commission is for always resolving every doubt in favor of the claimant. Thus the 
Commission may be inclined to discount his testimony. 

Every state with workmen’s compensation faces this problem. There are two 
ways of minimizing the difficulty: (1) GBy providing independent medical examiners 
on the staff of the Commission, or retained by it from time to time, and (2) getting 
and keeping a staff of well qualified inspectors and investigators for th/e Commission. 
Unfortunately Oklahoma has not applied to its Industrial Commission the principle 
of permanency of tenure which is peculiarly necessary in a quasi judicial organi¬ 
zation which has to apply so; complicated a law to such a, diversity of facts extremely 
difficult to establish '.with accuracy. In Oklahoma, in marked contrast with Wisconsin 
where workmen’s compensation administration is outstanding, no present member 
of the Commission has served as long as six years, and only one examiner has served 
as long as twelve years. The great majority of the employees have been in the 
service less than four years. High qualifications have not been established either for 
the commissioners or the examiners. 

Office Practice. Prior to the appointment of the present secretary, less than six 
months ago, the office practices of the Commission were almost unbelievably anti¬ 
quated. In some respects, they are now being improved. The whole office practice 
and procedure should be overhauled and systematized. 

Quarters. If possible the waiting room for persons calling to see the commis¬ 
sioners or the examiners should be separated from the part of the room in which 
clerical work is done. An effort should also be made to get desks and files out of the 
main hearing room, so that employees can concentrate on their work uninterrupted 
by the hearing, and so that a commissioner will not have to ask an employee to stop 
typing so that he can hear a low speaking witness. On occasion, too, the commis- 


190 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


sioners have to make a physical examination of a claimant, which necessitates wait¬ 
ing while the women employees, whose work desks are in the room, drop their work 
and leave, at least for the duration of the physical examination. The present ar¬ 
rangements give an impression of disorder and confusion. 

Statistics. Section 13392 of the workmen’s compensation law provides that “an¬ 
nually, on or before the first day of January, the Commission shall make a report to 
the Governor, to be by him transmitted to the Legislature, which shall include a 
statement of the number of awards made by it and the causes of the accidents leading 
to the injuries for which the awards were made.” The apparent intent of the legis¬ 
lature was to get the facts regarding the causes of accidents; but the reports for the 
past four years do not contain the required data; the Commission has not compiled 
them. 

Various persons have stated to us that the .Commission hlas discriminated against 
the private insurance carriers and in favor of the state insurance fund. The allega¬ 
tion is that the claimant who is to> be paid by a) private insurance carrier is more likely 
to get an award than one covered by the state fund and that the award will he larger. 
If the Commission had anything approaching adequate statistics, it would be pos¬ 
sible to check those allegations and see whether there is any foundation to them. 

The actual number of cases settled cannot, as a matter of fact, be determined 
from the statistics of the Commission. The figures relate to awards and not to cases, 
and there may be a number of awards in a single case. The present statistics relate 
more to the procedure of the Commission than to matters that are of real concern 
to the legislators, the insurance carriers, the employees and the industrial workers. 
They ara made up from day to day from the journal of the Commission and not from 
an analysis of completed cases. Statistics of real significance would come from a 
study of completed cases, dated according to the time of the accident, so that all 
concerned would really know how cases are being handled in the Commission. That 
such work is difficult and requires the services of a highly trained and experienced 
statistician is admitted. At present the Commission employs a statistical clerk; and if 
a competent, trained statistician should lay out a statistical plan and supervise its 
execution, the present employee could handle the details. In Wisconsin the present 
secretary of the Commission served as its statistician for two years prior to his ap¬ 
pointment as secretary in 1922. He was drawn from the Department of Economics 
of the State University and holds the degree of Doctor of Philosophy from that Uni¬ 
versity. 1 A statistical clerk at an actual salary of $1,320 cannot be expected to design 
and install an adequate statistical system, nor to make the analysis that is essential for 
control of the administration of the workmen’s compensation law. 

THE STATE INSURANCE FUND 

The State Insurance Fund was established July 1, 1933. 2 The purpose is to in¬ 
sure employers against liability for compensation imposed by the workmen’s com¬ 
pensation act and to assure the persons entitled thereto the compensation provided 
by that act. 

The fund is a revolving fund consisting of (1) such specific appropriations as 
the legislature may from time to time make or set. aside for the use of such fund, 3 (2) 
all premiums received and paid into said fund for compensation insurance issued, (3) 
all property and securities acquired by and through the use of moneys belonging to 
the fund, and (4) all interest earned upon moneys belonging to the fund and de¬ 
posited or invested as provided in the law. It is provided that the state is without 
liability beyond the amount of the fund. 

The fund is to be used (1) for the payment of losses sustained on account of 
insurance and (2) for the payment of expenses in the manner provided in the act. 

'Ray Andrews Brown, The Administration of Workmen's Compensation, (University of 
Wisconsin Studies in the Social Sciences and History, No. 19, 1933, p. 20.) 

2 Laws, 1933, Chap. 72. 

8 The state made an initial appropriation of $25,000 from its General Fund, but this 
appropriation was never used. Hence, Section 7 of the law that provides for the repayment 
of the $25,000 to the General Fund was not brought into operation. 



ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


191 


The law states “said fund shall, after a reasonable time during which it may es¬ 
tablish a business, be fairly competitive with other insurance carriers, and it is the 

intent of the Legislature that said fund shall ultimately become neither more nor less 
than self-supporting.” 

The State Industrial Commission is by law invested With full authority over 
the fund except that: (1) “The State Insurance Board shall have full power and au¬ 
thority to fix and determine the ratio to be charged by the State Insurance Fund for 
compensation insurance,” and (2) the State Treasurer is custodian of all monies and 
securities belonging to the fund, and disburses the fund “upon awards and orders . . . 
under the seal of the Commission and signed by the Chairman and attested by the 
Secretary.” All moneys collected must be delivered to the State Treasurer and “no 

monies received or collected on account of said fund shall be expended or paid out 

of said fund without first passing into the State Treasury.” 

fihe Commission, subject to the approval of the Governor appoints “such assistants, 
accountants, claim adjusters anjd other employees as may be necessary to conduct 
the business, . . . provided that in no event shall the salaries of such employees ex¬ 
ceed twenty per cent of the earned premium.” Prior to the first days of January 
and July, the Commission is required to submit to the Governor through the State 
Budget Officer for his approval, an estimated budget of expenses for the succeeding 
six months. For the purpose of administration, the commissioners may not expend 
for any item a greater amount than has been approved by the Governor for that item 
in the budget. 

The Commission is specifically authorized to delegate “to the manager of the 
State Insurance Fund, or to any officer . . . any of the powers, functions or duties 
conferred or imposed on the Commission.” The officer to whom the powers are del¬ 
egated exercises them “with the same force and effect as the Commission, but subject 
to its approval.” 

The payroll of the fund as of December 31, 1934 was as follows: 


Manager _$225 

Assistant _200 

Accountant _150 

Accountant -150 

Accountant _150 

Claim Manager _150 

Claim Clerk _125 

Payroll Auditor -150 

Payroll Auditor _150 

Stenographer - 125 

Stenographer _ 125 

Stenographer _ 1 -- 125 

Stenographer - 100 

Stenographer - 100 

File Clerk _100 

File Clerk _ 100 


$2,225 

Policies Written. From the establishment of the fund on July 1, 1933 to De¬ 
cember 31, 1934, 1,041 policies were written and 162 cancelled; 374 expired; 107 
were renewed by certificate and 130 by new numbers; and 742 were in force on 
December 31, 1934. Audits numbering 622 were made, developing additional premiums 
amounting to $28,369.34. 

Finances. During the same period, the fund received in cash $529,422.15, of which 
only $21.31 was from interest. It had, in addition, $54,173.89, earned premiums due it 
in process of collection. From guarantee deposits from the insured it received $129,- 
509.18, and from earned premiums $399,891.76. It has received absolutely no money 
from the state. All the state has given are the quarters. All other expenses have 
been paid from the cash receipts for guarantee deposits, earned premiums and the 
tiny bit of interest. 





















192 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


The total cash disbursements through December 31, 1934, were $102,484.54,' of 
which $23,975.27 went for operating expenses, an;d $138,509.27 for awards on claims. 
The awards on claims were divided; $83,277.84 for compensation awards, and $55,231.43 
for medical awards. Thus, at the close of business the books showed cash and in¬ 
vestments of $366,937.71. 

The act provides for the distribution of the earned premiums into reserves, 20 
per cent for operating expenses, 10 per cent for catastrophe reserves, and 70 per cent for 
medical and compensation awards. The status of the three reserve accounts as of 
December 31, 1934, was reported as follows: 


Operating Medical and 

Expense Catastrophe Compensation • Total 

20% 10% 70% _ 

Carried to Reserve $79,978.35 $39,989.17 $279,924.23 ^o99,891.75 

Paid out of Fund 23,975.27 - 138,509.27 162,484.54 

Balance of Reserves $56,003.08 $39,989.17 $141,414.96 $237,407.21 


It should be kept in mind that such figures may prove grossly misleading 
as to the actual condition of the fund, because liabilities for the payment of claims 
are not definite and precise, but are uncertain and may extend a considerable time 
into the future. A case that appears at the outset as a comparatively simple injury 
may lead to a series of complications; and compensation estimated at first to cost only 
a few hundred dollars, may in an extreme case run into the thousands and Involve 
in addition large bills for medical treatment. 

Under the Oklahoma compensation law, payments for total and permanent dis¬ 
ability may continue for as long as five hundred weeks. 2 A new fund such as this 
has only a few of those 500 week cases in its early days, but it is constantly adding 
to them as the years go on; and it is not until the fund is five hundred weeks old 
that such cases begin to pass off the books. In other words, the fund will not be 
under full normal load until it has been in existence almost ten years. Thus, although 
the actual payments out of the fund in the early years are way below the earned 
premium receipts, showing a substantial cash balance, the fund is not necessarily in 
good shape financially; and it may even be running behind despite the cash in its 
vaults. 

In the actual administration of the fund, the Commission sets up a special reserve 
for each case as soon as an award is made, and then it charges all expenditures against 
that reserve. If the reserve initially set up proves too small, it adds to the reserve 
from time to time according to its best advance estimate as to what the case will 
cost from then on. When a case is closed the unexpended balance of the reserve set 
up for it is written off the books. A table in the Annual Report for 1934 (page 30) 
shows for each of the nine groups of industries the reserves thus set up, the disburse¬ 
ments from the reserves, and the “unexpended balances,” for (1) compensation, (2) 
medical and (3) total. The term “unexpended balances” used 'in that table may prove 


*In the annual report of the Industrial Commission for the year 1934, page 30, an item 
of $13 835.90 is included as a cash disbursement from the Catastrophe Reserve, but it was 
spent for investments. It is not included in the $162,484.50 given above, for it is not a sum 
actually paid out of the fund. It will be noted that in the report this amount thus invested 
is subtracted from the Catastrophe Reserve of $39,9S9.17, leaving, according to the report, 
a balance in the Catastrophe Reserve of $26,153.27. It is submitted that this procedure is mis¬ 
leading. No real expenditure has been made from the Catastrophe Reserve. Its real balance 
is still $39,989.17, of which $26,173.27 is in cash, and $13,835.90 has been invested, and the 
investments belong to the Catastrophe Reserve. 

^Because of the provisions of the state Constitution, cases of death from industrial acci¬ 
dents are not covered by the compensation law. They go to the courts and not to the Com¬ 
pensation Commission. They are not covered by the state fund insurance policies. Many 
persons are advocating the repeal of the existing constitutional provision so that the Indus¬ 
trial Commission, under the compensation law, may make awards in event of death from in¬ 
dustrial accidents. Such awards often run to the widow for the balance of her life, which adds 
another element of uncertainty into the financial condition of the fund, and calls for expert 
actuarial service in setting up reserves and evaluating the real financial conditions of the fund. 












ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


i<>:; 


misleading. It is recommended that in the future this column be headed "Estimated 
future costs of compensation already awarded.” 

The law establishing the state fund has three principal methods for preserving 
the soundness of the fund; (1) "Reserves shall be set up and maintained adecpiate to 
meet unanticipated losses (catastrophe reserves) and carry all claims and policies 
to maturity, which reserves shall be computed in accordance with such rules as ap¬ 
proved by the State Insurance Board;” (2) the rates are fixed by the State Insur¬ 
ance Board; and (3) an advisory committee of five is provided, composed of em¬ 
ployers or officers of employers insuring in the fund, appointed by the Governor for 
a term of two years, with the chairman of the Commission as Chairman of the advisory 
committee, and this committee is directed “to consider the condition of the State In¬ 
surance Fund” and to make “a detailed examination into the condition of its reserve 
and investment and other matters relating to the administration of such Fund.” 

It appears that the State Insurance Board is not doing any continuing work in' con¬ 
nection with the State Insurance Fund. It merely fixed, at the beginning, the price 
to be charged by the fund at 15 per cent, less than the basic manual rate as used 
by private insurance companies, and it did not provide for debit ratings for especially 
bad risks such as the private insurance carriers use. A question may be raised as to 
whether the state fund may not be getting the poorer risks. The Advisory Board has 
met twice since the act 'was passed ; but an advisory board of laymen is not equipped 
to do more than review the material submitted to it by the Industrial Commission 
and the officers and employees of the fund. In the opinion of the survey, 

The State Insurance f und should he kept under constant actuarial and statistical control, 
and for this purpose it should establish and operate an adequate statistical system. The work 
of designing, installing, and supervising such a system should he done by a>i actuary or statis¬ 
tician experienced in the field of workmen's compensation. 

In this type of work it! is extremely easy for the laymen to go wrong, and! even 
fairly able accountants, untrained in actuarial science, may get the fund into dif¬ 
ficulties. In this connection attention should again be called to the unverified allega¬ 
tion that the fund has been protected and built up at the expense of the claimants 
insured under it. If such is the casei the fund will not make so good a financial record 
under a fairer administration. An adequate statistical actuarial system is essential 
to disclose the facts and to enable the Governor, legislators, employers and employees 
to know how, the fund is actually being administered. 

Acbninistrative Difficulties. Administration presents difficulties because the state 
has three functions to perform: (a) It is the judge determining upon the merits of a 
controversy between an injured worker and the fund; (b) it must protect the fund 
against the malingerers and the claimant who exaggerates! the nature, extent, and prob¬ 
able duration of an injury; and (c) it must see that the rights of the employee are fully 
protected. ' 

Relations With Medical Profession. Administration involves also close relationship 
with the medical profession. When a private employer is insured under the state fund, 
all his employees must be examined by a physician approved by the fund and passed 
by that physician; and applicants for employment must be approved by the physician 
before they are employed. Medical care satisfactory to the state fund must be avail¬ 
able for such employees covered by the state fund policy as may be injured. When 
a claim is filed, the company physician, approved by the state fund, must give testi¬ 
mony. Thus, the state has a large influence over the choice of physicians. Conceiv¬ 
ably it might, if it wished, use its economic power to influence the nature of the tes¬ 
timony it receives at hearings. A politically-minded administrator could select phy¬ 
sicians on a, patronage basis, a dishonest one might even select, physicians who would 
split fees with him. The extent of the difficulty is in pajrt indicated by the fact 
that in the calendar year 1934 the state fund disbursed over $54,000 for 
medical compensation; and during the first three months of that year the fund 
was Just getting under way. If estimates are based on the last nine months of 1934, 
the annual medical compensation bill would be about $06,000; if based on the last 
three months, about $80,000. If the number of employees Insured increases, as seems 


194 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


probable, the expenditure for medical compensation will, of course, increase greatly 
beyond these figures. Under these circumstances: 

It would appear raise for the state to obtain through open competitive examination at 
least, a medical advisor who should have general supervision over all the medical work of the 
fund, and of the Compensation Commission. 

He should be a physician of high standing in the medical profession, an expert 
diagnostician, a good administrator and a person of unquestioned integrity. He should 
be primarily responsible, under general direction, for all the medical work connected 
with compensation insurance. He should have available funds to permit him, when 
necessary, to call in other physicians, chiefly specialists. He should review, or provide 
for the review, of all contested cases in which there is a marked divergence in the 
testimony of physicians and give to the commissioners the results of this review for 
their information and guidance in the settlement of the case. He should investigate all 
complaints involving medical matters and report his findings to the Commission. He 
should make recommendations to the Commission regarding all selections of physicians 
required under state law. It is recommended that he be a full-time emp’oyee and that 
he be prohibited during his tenure of office from engaging in private practice. The 
salary, therefore, should be high enough to attract and hold a first class man. It is 
further recommended that the open competitive examination be given by a board of 
three physicians, to be appointed by the Governor, from a panel of net less than nine 
submitted to the Governor by the governing board of the Oklahoma Medical Society. 
The examining board of physicians should certify to the commissioners of the Gov¬ 
ernor, the names of the three candidates deemed by the examining board best qualified 
for the position, and the Commissioner or the Governor should appoint one of the 
three as medical director. If the state fund is placed under the Department of Labor 
as subsequently recommended, the medical advisor could serve the entire Department. 

Safety Work. The workmen’s compensation policy issued to employers insured in 
the state funds contains the following argument on the part of the fund as one of the 
considerations for the premium paid by the employer: 

To serve the Employer (1) by the inspection of the work places set forth in said declara¬ 
tion, whenever deemed necessary by the State Insurance Fund, and thereupon to suggest to 
the employer such changes and improvements as may operate to reduce the number and severity 
of personal injuries during work. 

The fund, however, has no safety engineering positions and no employees specially 
qualified for such work. In fact thus far the state insurance fund has not deemed it 
necessary to do safety work. 

Payroll Auditing. The question may also be raised whether tlio state fund, is keep¬ 
ing abreast of the necessary auditing of payrolls to make sure that premiums are being 
paid for the actual number of employees who are covered by insurance. It is, of course, 
desirable to keep down the operating costs pf the fund and to build up a strong re¬ 
serve; but, unless payroll audits are kept up-to-date, the fund may lose considerably 
more in premiums than it saves in costs of administration. To preserve fairness to 
employers, all must pay full premium for the number of employees actually carried on 
the rolls. The 622 audits made up to December 31, 1934, developed additional premiums 
due the state fund of $28,369.34, an amount which exceeded the entire operating ex¬ 
penses of all branches of the fund by over $4,000. Thus, the fund may actually be 
losing money by holding down its expenditures for auditing. 

Quarters. It is surprising to find the employees of the state insurance fund quar¬ 
tered in rooms that have no windows, no natural light, and no adequate provision for 
ventilation. When the doors are open, the noise and confusion are disturbing; if the 
doors are closed, the air quickly becomes stale. The working conditions in the 
rooms were highly unsatisfactory in January and February; they must be ;worse in 
June, July, and August. Several of the inside rooms at the Capitol are probably un¬ 
suitable for work quarters for any considerable number of employees. Tfley might be 
used for storage, files, or book stacks 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


195 


DIVISION OF VOCATIONAL EDUCATION, STATE BOARD OF EDUCATION 

The A^ocational Rehabilitation Service is directed by the State Board of Education, 
cooperating with the United States Office of Education. Headquarters have been es¬ 
tablished in the Department of Education, where the work is administered by a state 
supervisor. Two regular full-time case production and service workers are provided 
to cover designated sections of the state. One has headquarters in Oklahoma City, and 
the other in Tulsa. 

Each individual case may call for one, and usually at least two, of the fol¬ 
lowing services: (1) physical restoration; (2) vocational training; and (3) place¬ 
ment in employment. 

The program of trade and industrial education carried on in cooperation with the 
federal government, has three main parts: (1) Day trade schools; t2) part time 
schools; and (3) evening trade extension schools.. The dajy trade school is organized 
to teach one or more complete trades or occupations. Each pupil prepares for a par¬ 
ticular trade and devotes his full time to preparation. In 1933-34, such schools were 
conducted in nine centers and enrolled 1,180 male and 46 female pupils. Part-time 
schools are either (a) trade extension or (b) trade preparatory. These schools op¬ 
erated in 1933-34 at seven centers enrolled 1,318 students, all female. Evening trade 
extension schools were conducted during 1 1933-34 at 17 centers, a tota: enrollment of 3,- 
668, of whom 3,156 were male and 512 female. The vocational division also conducts from 
time to time foremanship conferences. Five were conducted in the biennium partici¬ 
pated in by 484 men. Police conferences and foreman training school have also been 
conducted. The Superintendent of Public Instruction reports for the year ending June 
30, 1933, the rehabilitation of 87 individuals; and, for the following year, 166 in¬ 
dividuals. Open cases numbering 1,884 were reported on June 30, 1934. Expenditures 
on this work during the biennum 1932-34 amounted to $100,243.96, of which about 48 
per cent came from federal funds, 45 per cent from state funds and 7 per cent from local 
funds, jl he staff for vocational rehabilitation on December 31, 1934 included, besides 
the state supervisor and the two local supervisors,, a secretary, a part-time clerk, a part- 
time case-worker, and a part-time auditor. 

GENERAL CONCLUSIONS AND RECOMMENDATIONS 

The preceding review of labor administration shows that closely related activities 
are carried on by different and separate organizations. No method has been devised 
to coordinate them. Influenced by the federal government, the rehabilitation unit in 
the Department of Education has two cooperative agreements, one with the Depart¬ 
ment of Labor covering employment service, and the other with the Industrial Commis¬ 
sion. The former has a breath of vitality, but the latter, entered into with due for¬ 
mality on November 23, 1920, is so much a dead letter that certain responsible of¬ 
ficers of the present organization did not even know of its existence. Experience in 
public administration indicates that such cooperative agreements tend to become mere 
scraps of paper unless some definite organization is provided to give them effect. In 
this instance, the best results would probably be obtained if all the agencies now con¬ 
cerned with labor matters, excepting only the trade and industrial education unit of 
the Department of Education, were brought together in a single department. It may 
be suggestive, in considering how the Department shall be set up, to refer to two 
different plans, one adopted by New York and the other by Wisconsin. 

New York has a Department of Labor, presided over by a single commissioner ap¬ 
pointed by the Governor. The commissioner is responsible for the administration of 
the Department, but does not do- the quasi judicial work involved in settling claims 
under the workmen’s compensation law. These claims are heard by an industrial board 
of five members appointed by the Governor “at least one of whom shall be an attorney.” 
The Industrial Board, in its quasi judicial work, is entirely independent of the com¬ 
missioner ; but all the administrative, investigative and clerical work involved in ad¬ 
ministering the compensation act is carried on by a bureau of the Department under 
the direction of the commissioner. Thus the members of the industrial board are in 
effect judges with no direct responsibility for administration. 


196 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


Wisconsin has concentrated its labor activities under an Industrial Commission of 
three members appointed by the Governor. The commissioners are (1) the administra¬ 
tive directors of the Department and (2) the judicial officers, settling in the first in¬ 
stance, compensation'claims. The Commission has a special division or bureau for ad¬ 
ministrative, investigative, and clerical work involved in the administration of the 
compensation act. All labor legislation is enforced by the three commissioners. 

Oklahoma, apparently, cannot adopt the Wisconsin plan without a constitutional 
amendment. It could, however, adopt the New York plan by having the commissioner of 
labor the chief executive officer and having the quasi judicial work of settling compensa¬ 
tion claims} done by the present Industrial Commission, which Commission would be inde¬ 
pendent of the Commissioner of Labor in its quasi judicial functions. The administra¬ 
tive, investigative and clerical work, which is not quasi judicial in character, would con¬ 
stitute the responsibility of the Commissioner cf Labor and would be in charge of a 
bureau chief. It is believed that this rearrangement, which could be effected.' without 
constitutional change, would result in a marked improvement in the administration of 
the labor laws of the state. 

The Department of Labor in Oklahoma, under an elected head, is among the best 
administered departments in the state government, and is much better run than many 
of the agencies under appointive heads. It has secured reasonable continuity of service 
for its employees. With conditions as they were in Oklahoma in the first three months 
of 1935, with politics permeating the administrative departments, a recommendation 
that the Department of Labor be placed under an appointive board or an appointive 
commissioner cannot be made with any enthusiasm or conviction. For the time being 
there appears to be no hurry about amending this provision of the Constitution. Okla¬ 
homa could make enormous improvements in its labor administration under it; and 
then later, if it seemed wise, it could change the Constitution either^ by providing for 
an appointive commissioner or an appointive board. For the present, therefore, it is 
recommended that: 

The state Department of Labor should be reorganised so that it will contain all agencies 
of the state now concerned zvith the administration of labor matters, excepting only the unit of 
fhc state Department of Education concerned- zvith industrial education. 

The Industrial Commission should be transferred to the Department of Labor and its 
zvork be distributed as follozvs: 

a. Its quasi judicial functions left zvith the three commissioners zvho shall be an inde¬ 
pendent board within the Department without any administrative authority over either the 
state insurance fund or the detailed administrative zvork in the field of workmen’s compen¬ 
sation, said board in its quasi technical functions to be independent of its commissioners. 

b. The administraiiz’e, inz/estigatwe and clerical work incidental to workmen’s compen¬ 
sation be placed in a new division of the Department under an able division chief, preferably 
a member of the bar, experienced in workmen’s compensation zvork. 

c. The statistical zvork to go to a division of research and statistics. 

The State Insurance Fund should be transferred to the Department of Labor and made 
a division of the Department, zvith its manager as division chief, subject to the general control 
of the head of the Department and not of the Industrial Commission. 

The Constitution and the mining lazvs should be amended to provide that the chief mine 
inspector be appointed by the Commissioner of Labor, zvith the approval of the Governor; and 
the district mine inspectors should be appointed by the chief mine inspector, zvith the approval 
of the Commissioner of Labor. 

The rehabilitation zvork now done in the Department cf Education should be transferred 
to the Department of Labor. 

It is suggested that the reorganized Department of Labor should have, in ad¬ 
dition to the Industrial Commission and the Board of Arbitration and Conciliation, the 
following subdivisions: 

(1) The Office of the Commissioner, serving as a bureau of administration. 

(2) The Bureau of Employment, to be organized much as at present, except that 
all compilation and analysis of statistics should be done in the Bureau of Research and 
Statistics. 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


197 


(3) The Bureau of Safety and Sanitation, having as its chief a trained and ex¬ 
perienced safety engineer. Under him should he three sections (a) factory inspection, 
(b) mine inspection and (c) enforcement of the laws; governing the employment of 
women and children. This Bureau should do, in addition to regular factory and mine 
inspection, all the safety work required in the enforcement of the workmen’s com¬ 
pensation law and the administration of the state insurance fund. The Bureau of Re¬ 
search and Statistics should do all compilation and analysis of statistics. 

(4) The Bureau of Workmen’s Compensation which should be under a director, 
preferably a member of the bar, with practical experience in the investigation of com¬ 
pensation cases and in the administration of workmen’s compensation laws, a first 
class administrator of unquestioned integrity, to serve during good behavior and to 
keep entirely aloof from all political activities. Sections of this. Bureau might well 
he; (a) claims (b) investigations (c) dockets, and (d) files and records. The claims 
section should be so organized that the claimants can be helped and advised in the 
preparation of their claims. Conceivably the Department might employ, at state ex¬ 
pense, one or more claimants’ council, who, when so desired by a claimant, would rep¬ 
resent his interests in hearings before the Industrial Commission. All statistical work 
now done by 1 the Industrial Commission should be transferred to the Bureau of Research 
and Statistics. 

(5) The State Insurance Fund, headed by a manager, preferably one with knowl¬ 
edge and experience in insurance administration and a good working knowledge of 
casua.ty actuarial work, to be directly under the Commissioner of Labor. Neither the In¬ 
dustrial Commission nor the Bureau of Workmen’s Compensation should have any 
control over him, and the Industrial Commission should have no authority over the 
State Insurance Fund and no responsibility for it. Any ground for suspicion that the 
judges are influenced by the condition of the fund should, so far as possible, be re¬ 
moved. The fund should get needed safety work done by the Bureau of Safety and 
Sanitation, and its statistical work by the Bureau of Research and Statistics. 

(G) The Bureau of Rehabilitation, which should attend to (a) all those persons ap¬ 
plying to the employment service for jobs who cannot be placed because of physical or 
mental defects, or because of marked deficiency in education or experience, and (d) all 
persons so disabled that they cannot return to their old employments and must be re¬ 
trained if they are to become self-supporting. The Bureau should cooperate with the 
Department of Public Welfare* the Department of Education, and, when necessary, with 
the Department of Health. 

(7) The office of the Chief Medical Adviser, which should serve primarily (a) the 
Industrial Commission (b) the Workmen’s Compensation Bureau (e) the State Insur¬ 
ance Fund, and (d) the Rehabilitation Bureau. 

(8) The Bureau of Research and Statistics, which should be directed by a well- 
trained, experienced labor economist and statistician, and especially well equipped in 
the field of workmen’s compensation and able to make the necessary tabulations to 
provide actuarial and statistical control for the administration of the State Insurance 
Fund. The employees now doing statistical clerical work in the various agencies compos¬ 
ing the reorganized department of labor should be transferred to this Bureau. After a 
new statistical system has been designed and installed, the director of this Bureau 
should have some time to devote to research on labor problems in Oklahoma, partly 
for immediate administrative purposes and partly to aid in long time planning. 
Since he and his assistants will do the statistical work for the Bureaus of Employ¬ 
ment and Rehabilitation, it seems probable that the federal government might con¬ 
tribute to the costs of this Bureau. 

Should a system of unemployment insurance be adopted in Oklahoma, it could be 
handled administratively through a Bureau of Unemployment Insurance in the De¬ 
partment of Labor. 


CHAPTER XIII 


LIBRARIES AND RELATED AGENCIES 

Administrative organization in Oklahoma includes several agencies concerned in 
the main with the collection, preservation, and use of books and other publications, 
written and printed records, and other materials of historical, scientific, and educa¬ 
tional value. Public functions in this connection take the form of library administra¬ 
tion, management of archives and of museums, and legislative reference woik. In every 
state, such functions are considered essential to the general welfare; and they are to 
a greater or less extent and under different types of organization, established and 
supported by government. The major agencies in Oklahoma that exercise such functions 
include:, (1) The Oklahoma Library Commission; (2) the Oklahoma Historical Society; 
and (3) the Board of Directors of the State Library (the justices of the Supreme 
Court). Minor agencies are the custodians of (1) the American Legion! Memorial Hall, 
(2) the Grand Army Memorial Hall, and (3) the Confederate Memorial Hall. 

THE OKLAHOMA LIBRARY COMMISSION 

The Oklahoma Library Commission, established in 1919, consists of live members, 
the Superintendent of Public Instruction ex-officio, and four other members appointed 
by the Governor, for overlapping six-year terms. 1 Members of the Commission, as such, 
are unsalaried, but receive their necessary traveling expenses. 

Appropriations. For the fiscal year ended June 30, 1934, the Commission received 
an appropriation of $8,560 for salaries, contractual services, supplies, and equipment. 
An appropriation of $2,59G for books and periodicals was vetoed. 

Internal Organization. The Commission appoints a secretary, who acts as its execu¬ 
tive officer and is in immediate charge of administrative work. An indefinite number of 
assistants are authorized by law, the compensation of each assistant being limited to 
$1,800 a year. At the time of the survey, the staff consisted of the secretary, the assist¬ 
ant secretary, a traveling library director, an individual loan director, a packer and 
shipper and a record clerk and bookkeeper. 

Functions. The mandatory functions of the Commission are: (1) To give advice 
to all school, free, and other public libraries and! to alb committees proposing to establish 
libraries; and (2) to make an annual report. Under a law passed in 1925, the Com¬ 
mission constitutes a Board' of Library Examiners for the certification of librarians; 
and no head librarian of any free public library or school library in Oklahoma can be 
legally appointed unless so certificated. The Commission is authorized; (1) To receive 
gifts of money, books, or other property; (2) to purchase and operate traveling li¬ 
braries; (3) to publish lists and circulars of information; (4) to conduct summer schools 
of library instruction; (5) to conduct a clearing house for periodicals for free gift 
to local libraries; (6) in connection' with and under the supervision of each state 
normal school, to arrange for lecture courses at these schools on library management; 
(7) to cooperate in devising plans for school district libraries; (S) to aid teachers in 
school library administration; and (9) to formulate rules governing the use of school 
libraries, such rules to be promulgated through the Superintendent of Public Instruction. 

Operations, Needs, and Results. The statutory powers, and duties of the Library 
Commission seem to be adequate; and are performed as fully as conditions permit. 
Its present staff is apparently) competent, devoted to its work, and keenly interested in 
the adoption of sound policies. Its operating methods, have not been carefully studied 
but appear efficient and economical. The law requires the headquarters of the Com¬ 
mission to be in the Capitol; and the rooms now occupied by the book collections are 
crowded. 

Measured by the needs of the state, recent appropriations for the Commission have 
been obviously insufficient. In 1934, there were 74 public libraries in the state.- These 
included one county library. The Commission reports that 1,5S2,000 persons in the 
state are without local library services; and in 26 counties not a single public library 
is to be found. Most of the people without local libraries live in the rural district* 


1 Stat. 1931, Secs. 491S-26. 



ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


109 


Oklahoma ranks low among the states with respect to library service. Only 15 other 
states have as large a percentage of people without such service; only 13 others have 
as few books in their public libraries in proportion to the population; and only 10 
others spend as little per capita for these essential services. Nevertheless, there is 
every indication that Oklahomans, like other intelligent people, appreciate the value 
of books and make good use o-f them (when they are procurable. 

In attempting to improve the situation generally and to provide equal oppor¬ 
tunities for rural residents, the Oklahoma Library Commission had! acquired up to June 
30, 1934, about 81,000 books; and the total number of books in thle library, after deducting 
those worn out and discarded, was about 69,000. The Commission sent out upon re¬ 
quest during the biennium 1932-34 about 287,000 books, serving approximately 984,000 
people. 


OKLAHOMA HISTORICAL SOCIETY 

The Oklahoma Historical Society, established in 1895, was given at an early date 
a quasi-pubTie character and is made for certain purposes an agent of the state. 1 It is 
governed by a Board of Directors, consisting of 25 members, with the Governor as an ex- 
officio member. All members, except the Governor, are elected by the Society/ 

Appropriations. Recent state appropriations to the Society have been by fiscal years 
as follows: 

1929- 30 _ 832,000 

1930- 31 _ 32.000 

1931- 32 _ 29.800 

1932- 33 27.400 " 

1933- 34 _ 19 8*0 

1934- 35 19.880 


Collections from membership funds are reported as follows: 

Year ending Jan. 23, 1930 _ $548 

Year ending Jan. 29, 1931 _ 517 

Year ending Jan. 28, 1932 _ 552 

Year ending Jan. 26, 10,33 _ 565 

Year ending Jan. 25. 1934 _537 

Year ending Jan. 24, 1935 _517 

Building. The state has provided the Society with a monumental structure, which 
contains a good-sized auditorium and a spacious reading room. 

Personnel. The members of the staff in immediate charge of the library and mu¬ 
seum collections are shown below as of March 29, 1935. 


Position 


Secretary _ 

Librarian _ 

Chief Clerk _ 

Collector (museum) _ 

File Clerk (newspapers) _ 

Cataloguer --- 

Stenographer _*_ 

Guide _ 

Clerk-archivist _ 

Custodian (G. A. R. Hall) — 
Custodian (Confederate Hall). 


Salary Service in 

..$1,809 

4y 2 

. 1 200 

71.4 

. 1.200 

12 

. 1,200 

16 

_ 1.200 

5 

_ 1.200 

6 

1.200 

iy 2 

_ 1080 

3(4 

1200 

5(4 

. 1.200 

9 

_ 1.200 

4 


Years 


Functions, Operations, and Results^ The Society is required by statute to collect 
books, maps, and other papers and materials illustrative of the history of Oklahoma in 
particular and of the West generally; to procure narratives of events from early settlers; 
to collect information regarding the Indian tribes; to purchase' books; to procure by 
gift and exchange scientific and historical reports from other states: to catalogue the 
Society’s collections; and to prepare an annual report. 

To enable the Society to effect exchanges, the law provides that 60 hound copies of 


’Stat. 1931, Secs. 4893-96. 

3 S. B. 39, approved April 25, 1935. 





























200 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


each state publication, except thje reports of the Supreme Court and the Criminal Court 
of Appeals, shall be donated to the Society. The la\v stipulates however, that the 
Society “shall not expend its resources in procuring duplicates of such publications as 
may be in the university* library.” In the statute law,' therefore, the Historical Society 
figures as a library and museum agency; and its functions as such 1 are of primary con¬ 
cern in this report. 

The library comprises about 10,000 volumes, not counting of coux-se the archives of 
the Five Indian Tribes, recently loaned to the state by the federal government. Except 
in rare instances, none of these books are loaned. The law - ' providing for deposit of 
state publications is not in all cases observed. Little use is made of the collections by 
research students; and practically no use is made of the reading room. Practically 
no calls are made on this library by state officials or members of the legislature. In 
spite of the clear intent of the law, many books in this collection duplicate thc-se at the 
University. A journal, Chronicles of Oklahoma, is published quarterly by the Society; 
but this periodical does not impress one as possessing outstanding merit. The most 
creditable developments in the Historical Building are the museum/ collections which, in 
the main seem capably handled. The law provides for three memorial halls, one for 
the American Legion, one for the G. A. R., and one for the Confederate Army. Each 
is under a custodian who must be a veteran of the army thus memorialized and who 
is appointed and removable by the Governor. Each has a statutory salary of $1,200. 
The American Legion Memorial Hall is in the Capitol; the other two halls are in the 
Historical' Society Building. 

THE STATE LIBRARY 

The law provides for a public library, to be known as the “Oklahoma Library,” 
under the direction and control of a Board of Directors, consisting of the justices of 
the Supreme Court. 

Personnel. The State Librarian is appointed by the Board of Directors, serves at 
their pleasure, and is authorized ( ta appoint, with their consent, an assistant state li¬ 
brarian and a reference librarian. The staff in March, 1935, consisted only of the State 
librarian at $1,800 and her assistant at the same salary. 

Functions and 1 Operations. , This library, established in 1S9S, must, according to the 
law, “consist of all law books, miscellaneous books, pamphlets, maps, charts, pictures, 
documents, and all other literary matter” otvned or acquired by the state. The law 
requires that 100 copies of each “report, paper, book or pamphlet” pertaining to tRb 
business or conduct! of any office or department of the state shall be deposited with 
the State Librarian, who must keep ten copies of each publication and may exchange 
the others. The Librarian is also directed ta send one copy each; of all reports', ses¬ 
sion laws, journals of the Senate and of the House and other books and pamphlets to 
each of the states and territories for the use of its library. Supreme Court reports 
are also distributed by the State Librarian. As in the case of the Historical Library, 
the law providing for the deposit of state publications is not consistently observed. 

The State Library seems to be an adequate law lit>rary t and, as such, competently 
staffed and managed. It hag no space, equipment, or staff for the conduct of legislative 
reference or archival work or for expansion into a general library. 

This Library should remain a specialised law library in its present physical location and 
with no change in its administrative set-up. 

PROPOSED REORGANIZATION 

In library development, Oklahoma does not rank high in comparison with other 
states; but it has nevertheless given partial recognition to obvious needs and has 
taken encouraging steps. The reorganization problem is actually much simpler in this 
state than it is in older commonwealths where various scattered agencies have become 
deeply rooted. Proper provision seems to have been made for coordination of the 
State Library Commission with public school administration; and the system for cer¬ 
tification of librarians is highly commendable. Oklahoma needs, however, a wider ap¬ 
preciation of the value of library service, a more authoritative, better integrated, and 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


201 


more adequately supported central organization, elimination of duplication among state 
agencies, and provision of, adequate library^ facilities for the rural population. Attempts 
to establish legislative reference and archival work litas thus far been alnio-t wholly in¬ 
effectual. 

These shortcomings, however, are not apparently due to the organization of the 
Oklahoma Library Commission. 

The Commission should be continued with its present set-up. 

The Historical Society is to be complimented for its interest in Oklahoma history. 
Such an organization is needed and may be expected to make continuing and important 
cu tural contributions. It is evident, however, that its present administrative and 
financial relationships with the state government have not worked satisfactorily and 
are not likely to improve. State financial support should be accompanied by state 
control. The activities, which are essential and which are now carried on in the 
Historical [Building, could be performed more effectively and more economically if 
transferred in part to the Library Commission and in part to the department of history 
at the University. 

State appropriations for the Historical Society staff should be transferred to the Library 
Commission. 

A committee should be appointed by the Governor representing the Historical Society , 
the Library Commission, and the University to make recommendations relative to the dis¬ 
position of the book collections now in the Historical Building. 

It is suggested that the Society be given by the state such space in the building 
as may be needed by its secretary; and it may be desirable, during a limited' period, fon 
the state to contribute some part of the secretary’s salary. 

The book collections and offices of the Library Commission should be transferred to the 
Historical Society Building. 

Such action would put to practical use space now unused and would relieve con¬ 
gestion in the Capitol. 

The secretary of the Library Commission should be designated State Librarian. 

Under the State Librarian should be a Bureau of Archives; each public official in charge 
of a department or other separate agency should be definitely obligated by law to turn over 
to the State Librarian, not only an appropriate number of each of its publications currently, 
but also all of its records and files zvhen these are no longer active. 

The present “State Librarian’’ should be designated Law Librarian and should have no 
duties relative to the receipt, exchange, or distribution of publications, except those of a legal 
and judicial nature. 

Legislative reference wdrk should not be a function either of the Library Commission 
or the Law Library . 1 

With due regard to financial conditions, careful consideration should be given to the 
question of establishing regional libraries in the rural sections, these to be maintained partly 
by the counties and partly by the state and to be closely coordinated with and supervised 
by the State Library Commission. 

The library law of the state should be revised. 

For the revision of the law and the planning of a long-time service program, an unsalaried 
commission should be established for a period of two years. 

The purpose of the foregoing recommendations is to pave the way for the devel¬ 
opment in Oklahoma of an effective, equitable, and economical library system, worthy 
of the state, and contributing in the largest possible measure to the enlightenment and 
happiness of its citizens, rural a s well as urban. 


’Legislative reference work is discussed in a later chapter. 







CHAPTER XIV 


COUNTY ADMINISTRATION 

County agencies concerned with public instruction, public welfare, health, highway 
construction and maintenance, law enforcement, finance, and elections are discussed 
in other chapters of this report. Abolition of township officers was completed in 1933; 
and their duties were transferred to appropriate county officers. The only functions 
relating to the once existing townships are those in connection with township roads 
and the liquidation of to'wnsliip indebtedness. These functions are discussed in ap¬ 
propriate sections of other chapters. The officers which remain to be discussed in this 
chapter are the board of county commissioners, the county clerk, the court clerk, the 
county surveyor, and the weigher. The more important functions of some of these 
agencies are treated elsewhere. The purpose of this chapter is to discuss the activities 
and officers which do not fit into the broad functional fields which form the subjects 
of other chapters. In the chapter on State and Local Administrative Organization, 
near the end of this report, the various parts of both the state and the county organi¬ 
zations will be brought together and described as a whole to indicate the nature and 
degree of their present relationships, and to show what changes will be produced if the 
recommendations cf this report are adopted. 

BOARD OF COUNTY COMMISSIONERS 

The Constitution provides, subject to change by the legislature, that thei-e shall 
be a board of county commissioners composed of three members in every county in 
the state. 

Selection. Each commissioner is elected from a district within the county by the 
voters of that district. The commissioners lay out the districts in compact form with 
as nearly as possible equal population; but districting may not be done oftener than 
once in three years. 

Term. All three are elected at the same time and serve a term of two years “or 
until a successor is elected and qualified,” beginning the first Monday in July following 
their election. 

Eligibility. The general eligibility requirement for county officers serves for the 
county commissioners; namely, that they be qualified voters of their county, except 
that no employee, officer or stockholder in any railroad in which the county holds stock 
may be eligible to the office of county commissioner. 

Bond. Each commissioner before entering on his duties shall execute Pond in a 
penal sum of “not less than one or more than five thousand dollars,” the amount and 
sufficiency to be determined by the county judge, who keeps the bonds on file in his 
office. 

Vacancies. Any vacancies which occur in the office of commissioner are filled by 
the Governor. 

Functions. The functions of the board of county coxamissioners may be treated 
under 1 four headings: (1) supervisory, (2) financial, (3) administrative, and (4) penal. 

Supervisory. Certain of the supervisory duties of th e board of commissioners may 
be considered as matters of routine business. These are the procuring and keeping of 
a suitable seal of the county to be used by the county clerk; holding stated and 
special meetings, which must be open to the public, for the transaction of county 
business; causing a report of proceedings to be published as soon as practicable after- 
each meeting; and electing one of their members as chairman to preside at meetings, 
administer certain oaths, and sign all orders and all warrants di-awn on the county 
treasurer, attested by the clerk. 

Other more general supervisory powers and duties relate to the supervision of 
other county officers, to the custody of county property and to the organization of 
subdivisions of county government, namely: Filling vacancies in other county of¬ 
fices; approving the appointment of deputy county officers; buying and selling county 
property and full custody thereof; providing quarters and supplies for county officers; 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


203 


providing safe and convenient cases for keeping all books and documents of the county 
entrusted to officers; auditing accounts of all officers having to do with money belong¬ 
ing to the county or appropriated for its benefit; and organizing and changing bound¬ 
aries of water improvement districts and drainage districts. The chairman of the 
board is also an ex-officio member of a regional planning commission if any is formed 
in the county. 

Financial. Financial duties relate to voting appropriations, acting on claims, 
buying and selling property, and purchasing and contracting. These are discussed 
in the chapter on County Financial Administration. 

Administrative. The county commissioners have certain direct administrative duties 
such as: supervising the construction and maintenance of highways and bridges, and 
hiring out county road machinery for private use; employing livestock inspectors for 
work in tick eradication and animal quarantine; supervising public health and welfare 
activities; establishing justice of the peace districts, and naming justices’ successors 
in certain cases; assisting in the enforcement of laws relative to marks and brands of 
livestock; and assisting in the extermination of predatory animals. Most of these 
duties are treated in other chapters. 

Penal. Their penal powers pertain largely to the conduct of their own meetings. 
They %iay preserve order when in session by punishing contempt with fines or iin-# 
prisonment in the county jail; and they may enforce obedience by attachment or other 
compulsory process and may collect fines through justices of the peace. Appeal from 
decisions of the board may be made to the district court by persons aggrieved, including 
the county through its attorney. 

Cost. The total cost of the 77 boards of county commissioners for each of the 
past four years, wi/th the amount appropriated for the current year, has been as 


follows: 

1930-31 _$223,119.00 

1931 32 322,059.00 

1932- 33 _ 280,427.00 

1933- 34 _ 274,427.00 

Yearly average _ 274,642.00 

1934- 35 (Appropriations) _ 286.468.00 


About 90 per cent of the total cost of the boards is for compensation to the com¬ 
missioners. Until 1935, this item included per diem and mileage allowances in ad¬ 
dition to a small salary; but the 1933! legislature enacted a county salary law in which 
this method of pay is replaced by a system of straight salaries fixed in the statute and 
scaled according to a classification of counties, the classification being based on pop¬ 
ulation, except in the case of Osage County which is classed separately because of 
its large area. During 1933-34, the last full year under the old law, the following 
distribution was made of the cost of the 77 boards. 

Salaries _ $150,406 00 

Per diem _ 85 930.00 

Mileage _ 5,282.00 

Misel. _ -_ 32,809.00 


Total _$274,427.00 

Under the new law the commissioners’ salaries are. their sole compensation, and 
range from $1,200 in counties with a population of 14.500 or less to $3,600 in counties 
with a. population of 200,000 or more (Oklahoma County). The full effect of the 
change cannot yet be determined because of the constitutional provision that no salary 
change - can be made effective during the term for which officers have been elected. 
The act was approved May 5, 1933, seven months after the election of officers for the 
last preceding term. Thus, it can not become effective until the beginning of the 
present term, July 1, 1935. 

Some idea may be had, however, of the effect of the neW law by estimating the 
amount of the expenditures it calls for. Table I has been prepared from, the statutory 
provisions. ,<Law..,1933, Ch. 11). The population class interval used . to classify the 














204 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


counties appears on. the left. The first column shows the number of counties in each 
class; the second, the total salary paid to the three commissioners in each county in 
each class; and the third, the total of the commissioners’ salaries for all counties it? 
each class. Osage County is omitted from the population grouping and added at the 
bottom because it is dealt with by special act. The total commissioners’ salaries 
provided for all 77 counties is shown at the foot of the last column. 


TABLE I 

COMPENSATION OF BOARDS OF COUNTY COMMISSIONERS 
AS PROVIDED BY LAYS, 1933, CH. 11 


Counties Grouped by 

Population Classes 
(1930 Census) 

Number 

Counties 

Salary Each 
Commissioner 
times 3 

Total 

Salaries 

14,500 or less 

17 

3,600 

61,200 

14,501 - 16,000 

9 

3,600 

32,400 

16,001 - 24,200 

15 

3,960 

59,400 

24,201 - 25,000 

3 

3,960 

11,880 

24,500 - 25,000 


_ 

_ 

25,001 - 43.000 

20 

3,600 

72,000 

43,001 - 65,000 

7 

4,500 

31,500 

65,001 - 75,000 

2 

5,400 

10,800 

75,001 - 100,000 

i 

5,400 

5,400 

100,001 - 200,000 (Tulsa) 

i 

7.200 

7.200 

Over 200,000 (Oklahoma) 

i 

lO.SOO 

10,800 

Over 2,200 squ. miles (Osage) 

i 

7,200 

7,200 

Total Compensation to Commissioners 



$309,780 


Some allowance must be made for miscellaneous expenses; and if $30,000 isl added 
(in round numbers the amount of miscellaneous expenses in 1933-34) the total re¬ 
quirements of the 77 boards under the new law may be estimated at something like 
$340,000. This is 5 per cent higher than the highest of the four years 1930-34, and 23 
per cent higher than the average. 

The legislature is to be commended for replacing the old basis of compensation 
with a straight salary system. Tlie advantages of the latter in eliminating the tempta¬ 
tion to extravagance and in placing the budget on a more business-like basis are ob¬ 
vious. In this particular instance, it does not appear to have been the purpose of the 
legislature to promote economy so much as to protect the commissioners’ budgets from 
possibly drastic reductions by over-zealous excise boards. Yet, opportunities do exist 
for reducing the cost of the commissioners’ office while keeping them on a straight sal¬ 
ary basis. 

Nature of Commissioners’ Duties. Unlike the jobs of administrative officials, the 
commissioners’ work cannot be regarded as professional. It is in the nature of a 
civic duty for citizens to help determine the policies they wish to follow in the con¬ 
duct of their public affairs. The responsibility for these policies naturally devolves 
on those most interested and active in public life. This responsibility should never 
be allowed to come into the hands of mere office seekers, and whatever may tempt them 
to* assume it, whether it be the ability to control patronage or simply the rate of remun¬ 
eration, should be done away with. People who consider it their duty to take part in 
their government are amply rewarded by the results of properly conducted government. 
It is not necessary to compensate them by more than a moderate honorarium designed 
to cover 1 their expenses. 

Opportunities for Economy. When a person is given a straight salary, it is as¬ 
sumed that he will perform a minimum amount of work. A fair minimum to expect 
of each of the commissioners, including supervision of the highways and overseeing 
the poor, could scarcely exceed 300 half days or 150 full days per year in all but the 
largest counties. On this basis, the following rates of compensation are scheduled bv 


the present law; 

In 46 counties at $1,200 -$ s.00 per day 

In 18 counties at $1,320 _ 9.20 per day 

In 7 counties at $1,500 _10.00 per day 

In 3 counties at $1,800 _12.00 per day 


In the remaining counties, where commissioners are paid from $2,400 to $3,600 it may 










ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


205 


be assumed that a higher minimum of work is required. Even here it is doubtful if 
more than 200 days could be expected. But assuming 200 days as a basis, the rate 
of pay would be: 

In 2 counties at $2,400 _$12.00 per day 

In 1 county at $3,600 _18.00 per day 

Elsewhere in this report, it is recommended that construction and maintenance of 
the secondary road system be entrusted only to qualified engineers; the technical duties 
of accounting and reporting, only to qualified financial officers; and the duties of 
caring for public health and overseeing the poor, only to trained workers in those 
fields. It* is in keeping with these recommendations, therefore, to suggest that the 
boards of commissioners be relieved of all specific functions connected with highways, 
public health, welfare, and financial administration. If this were done, the commis¬ 
sioners could restrict themselves to supervisory and policy-making functions; and their 
compensation could be reduced accordingly. There would be little business (which they 
could not dispose of through the county clerk’s office or at their regular monthly and 
quarterly meetings. All regular and special meetings need not then occupy the com¬ 
missioners more than 50 or 60 full days a year. On the basis of the day rate derived 
in the previous paragraphs the following scale of honorariums is a possibility: 


In 46 counties, 50 days at $ 8.00 per commissioner per day_$55,200 

In 18 counties, 50 days at 9.20 per commissioner per day_ 24,840 

In 7 counties, 50 days at 10.00 per commissioner per day_10.500 

In 3 counties, 50 days at 12 00 per commissioner per day_ 5.400 

In 2 counties, 60 days at 12.00 per commissioner per day_ 4,320 

In 1 county, 60 days at 18.00 per commissioner per day- 3,240 


Total _$103,500 


This would mean a total cost for commissioners’ salaries in the 77 counties of 
$103 500. If $30,000 is added to this figure for miscellaneous expenses, we have $133,500 
as a total cost of the boards to be compared with the estimated present cost of $340,- 
000. Further savings could be made if desired by reducing the day rate cn which the 
estimate is based. 

Utilization of Savings. Thie proceeds of this saving could be applied effectively to 
increase the salaries of the more highly specialized administrative officers. Transfer 
of duties from the commissioners to other officials increases the responsibility of the 
other officers and requires that they be trained and responsible administrators. It is 
pointed out elsewhere that the present salary scale for the administrative officers is 
not designed to attract trained; persons to public office in periods of normal business 
activity. 

Opportunities for Further Economy. Further savings might be possible in some 
counties by establishing a different form of executive agency. Provision should be 
made for other types of management; and the choice of the type best suited to local 
needs in any particular case should be left to the electorate of the county in question. 
Alternatives to the present system which might be considered for some counties are 
(1) a wholly unsalaried board of county commissioners, representing citizen participa¬ 
tion without monetary profit, a plan which might suit the needs of some poorer counties, 
and (2) the county manager plan, which might be suitable in the wealthier counties, 
provided desirable state-local relationships are not interfered with. In view of the 
high cost of the present county structure relative to financial ability in the poorer 
counties the legislature might provide for two or three optional forms of county man¬ 
agement. 


RECOMMENDATIONS 

The county electorate should be able to choose the type of management which best suits 
local needs. 

Adoption of this proposal will require provision for types of management other 
than the commissioner type, and will require legislation permitting the county elector- 












206 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


ates to select the type which best suits their needs. Suggested alternatives are (I) 
the county council form, (2) the county manager form. * 

If the present commissioner form is retained, all commissioners should be elected at large. 

This recommendation would require amendment of the Oklahoma Statutes, 1931, 
Section 7606, and would permit the repeal of Section 7643. 

All members should be chosen at the same election as state officers. Their terms of 
office should be four years and should begin on the second secular day in January following 
their election. „ ’ LI Ijlil 

This also calls for amending Section 7606 of the 1931 Statutes. 

The direct administrative duties of the commissioners in connection with highways, pub¬ 
lic health and welfare should be taken from them and entrusted only to trained administra¬ 
tive officials. 

Adoption of this proposal will require amendment of the 1931 Statutes, Sections 
7653, 7655, 7656, 7660. 

JJach county officer should have authority, subject to any personal lazv which may be 
applied to the counties, to appoint and remove his subordinates without interference from the 
board of commissioners. 

Appointment, in other words, should not be subject to the approval of the com¬ 
missioners. 

The compensation of the commissioners should be a moderate fixed honorarium designed 
to cover the expenses incurred by them in the performance of their duties. 

COUNTY CLERK 

The county clerk is an elected officer serving a two-year term. Before entering 
office he must give bond in the amount of at least $5,000 fixed and approved by the 
board of county commissioners. 

As clerk of the board of county commissioners he or his deputy attends ail meet¬ 
ings of the county commissioners; keeps their seals, records and papers; records their 
proceedings and resolutions; and attests all properly signed orders of the board for 
the payment of money. All accounts acted upon by the board are preserved by him 
with their action thereon, and he is bound to furnish a certified copy of these accounts 
or any other record in his office in receipt of a stipulated fee from any person demand¬ 
ing it. As clerk of the board he also serves as county auditor/ Hisl duties in this con¬ 
nection are discussed in the chapter on County Financial Administration. 

As Register of Deeds. Article XVII, Section 2 of the state Constitution provides, 
among other officers, for a county clerk and for a register of deeds. By an act of the 
legislature, however, the functions of the register were merged with those of the county 
clerk, and the office of register ‘was abolished. Sinc e 1915 the county clerk has per¬ 
formed a two-fold office. As register of deeds he is. assigned the work of keeping 
proper record of all deeds, mortgages, maps, plats and other legal instruments required 
by law to be recorded in his office. He keeps the road record, and a complete record 
of drains and ditches. 

Additional Functions. In addition to his functions as clerk and register, he re¬ 
ports certain information to officers of the state government, for example he forwards 
annually to the Secretary of State a list of the names and signatures of all county 
officers elected at the last preceding general election, and assists in compiling certain 
census Information and reporting fit. 

Eligibility. The only statement which the statutes carry regarding eligibility for 
office as clerk is the general one that no one can hold county office who is not a voter 
at the time of election or appointment. ..' ' ’ 

Present Personnel. Inquiry as to the experience and personal qualifications ‘of the 
administrative officers of the counties as well as an examination of the county reports, 
creates,..tho. inaptqssipn of., a. qualified and, responsible personnel.. Personal observation 
strengthens this, impression and suggests that the-, .successful conduct.of local public 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


207 


affairs is clue more to the knowledge and interest, of the people in office than to popular 
opinion or to the supervision of higher authority. Of 30 county clerks who were in¬ 
terviewed, all but two were over 30 years of age; 29 had received at least a graded 
school education; 25 had finished high school. Four had had two years or more of 
college training. Five had taken a clerical course from some business or correspond¬ 
ence school. One had finished law school. Their previous occupational experience 
varied. Fourteen had been in some form of manufacturing or mercantile business; six 
had been in politics before; six had been bookkeeping clerks; two had been teachers; 
and one a farmer. Only four, however, had held office for more than four years; 12 
had served from two to four years; that is, they had served or were serving a second 
term. The remaining 14 (nearly half) were serving their first term. 

It is desirable that a. longer tenure of office he provided for the county clerk. The 
notion that jobs should he passed around so that “everybody can have a chance” is 
incompatible with good administration. Efficient performance of the county clerk’s 
duties requires training and experience, In all cases, a careful selection should be 
made from qualified persons; and those selected should be given opportunity to master 
thoroughly their, jobs., 

Kequired Qualifications. The management of the clerk’s office is unusually de- 
Isentient on the interest and industry of the chief officer, who is charged with the per¬ 
formance of a wide variety of tasks. His office has become a dumping ground for all 
the clerical odds and ends connected with local public administration. He has lately 
been charged with locally administering federal and state relief. In some counties, 
alsq, be ds required to oversee the poor 'in the commissioner’s district where the county 
seat is located. These duties and responsibilities call for experience and judgment in 
several lines and require persons of varied ability and training. The qualifications re¬ 
quired by statute of the candidates for office are certainly not designed to prevent 
those who may be incompetent from running for election; and voters as a rule do not 
know what the duties of a particular office entail. It is true that the present inctim- 
bents are, for the most part, persons of unusual ability; but it is not reasonable to 
suppose that these officers can be retained -at present salaries in the smaller counties 
after a return of normal business conditions. 

Consolidation of Offices. The accomplishments of the clerk’s duties began when his 
office was consolidated with that of the Register of deeds. The consolidation was evi¬ 
dent^ effected in order to decrease the number of responsible officers and reduce the 
salary bill; but its. effect on the administrative organization is clearly disappointing. 
The~e is no magi'-’ by which consolidation wTl bring about reduced expenditure or better 
organization. The combination of the functions of two or more offices should be a stud¬ 
ied process executed with due regard for the nature of the resulting organization. 

Cost. The total cost of the offices of county clerk for each of the past four years 
is. shown below with the yearly average and the amount appropriated for the current 


1930- 31 __________$ 756,493,00 

1931- 32 655.527.00 

1932- 33 567.936.00 

1933- 34 __ 530 565.00 

Yearly Average _ (627.830.00) 

1934- 35 (Appropriation) _ 543 170,00 


The cost per county varies widely. In 1933-34, it ranged from $2,525 in Latimer 
County to $73,516 in Oklahoma County. This variation was partly due to the dif¬ 
ference in the salaries paid to the chief officer, partly to the difference in the supplies 
and misceraneous expenses, but chiefly due to the difference in the cost of clerk hire. 
Three counties are chosen for illustration; and they may be compared in the following 


table: 

Latimer 

Noble 

Oklahoma 

State Average 

Salary Chief Officer 

Clerk Hire 

Supplies and Miscellaneous 

$1 350 

780 

395 

$1,800 

1,944 

1,111 

$ 3,000 
61,645 
8,871 

$1,967 

3,303 

1,620 

Total 

$2,525 

$4,855 

$73,516 

$6,890 


The first county, Latimer, with next to the smallest assessed valuation in the state 















208 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


in 1934, represents the lowest valuation class; the second, Noble, a medium valuation 
class; and the third, Oklahoma, with the largest valuation in the state, the highest 
class. The figures for the three counties may be compared with the averages for all 
77 counties shown in the last column. The salary item from one extreme to the other 
shows a difference of 122 per cent; the supplies and miscellaneous item, a difference 
of 2146 per cent while the clerk hire shows a difference of 7803 per cent. It is easy 
to see, therefore, that the highly variable item, “clerk hire is chiefly responsible for 
the wide range in the cost of the clerk’s offices, although supplies and miscellaneous 
expenses make a variable of considerable influence. 

Salaries. The salaries of the county clerks are fixed by statute; and in both the 
1933 law and the one which prescribed the 1833-34 salaries they are scaled according 
to a classification of the counties based on population. According to the older law, 
they ranged from $1,300 in, counties with the smallest population to $3,600 in Tulsa 
County. The new law increases the range by lowering the salaries in the lowest pop¬ 
ulation group to $1,200, and providing a salary of $4,000 for the clerk in Oklahoma 
County. Salaries are lowered in 74 counties, raised in two (Osage and Oklahoma) 

and left unchanged in one (Tulsa) ; and the net result of these charges in compensation 

is a saving of $24,510 in the total amount paid to the 77 clerks. 

Clerk Hire. The 1933 salary law r does not affect allowances for clerk hire. The 

old law governed the number of deputies and their salaries as well as the salaries of 
the chief officer. It provided for 60 classes of counties based on population, and con¬ 
tained special acts for 70 counties as w r ell as a number of other special acts affecting 
only certain officers and their deputies. It represented the extreme of special legis¬ 
lation ; and the 1933 legislature did well to amend it. The amendments, however, af¬ 
fect only the salaries of the chief officers. It is regrettable! that the provisions for 
clerk hire are left in the chaotic condition prescribed by the older law. 

Supplies and Miscellaneous. Supplies of the clerk’s office include office supplies, 
blank record books, ledgers, forms, etc. Miscellaneous expenses include postage, tele¬ 
phone, telegraph, furniture and office equipment, and traveling expenses. Appropria¬ 
tions for these purposes are in the hands of the commissioners, subject to the ap¬ 
proval of the county excise boards. 

Fees. As against a total expenditure of $530,565 in 1933-34, the 77 clerk’s offices 
collected $479,174 in fees, besides $84,747 in county licenses to cigarette dealers. Since 
the clerks are on a salary basis, none of their collections are retained. All fees col¬ 
lected go to the county general fund and serve to reduce the amount of the ad valorem 
levies the following year. The county cigarette licenses are no longer collected; but 
they did go to the county highway fund. Taking the counties as a whole, fees col¬ 
lected almost pay the expenses of the clerk’s offices. But the amount cf these collec¬ 
tions depends on the amount of business (recording, certifying, copying, etc.) which 
the clerks’ offices do; and, taking the counties individually, the fees collected show 
a wide variation from county to county and from year to year. In the larger coun¬ 
ties, the clerks’ fees may exceed their total expenses in some years, but in the smaller 
counties the fees may fall short of total expenses by as much as 50 per cent. For illus¬ 
tration, the net expense of the clerk’s) office, to be borne by the ad valorem taxes shown 
for Adair and Seminole counties for the years 1930-31, 1932 33; and 1933-34. 

Adair Seminole 


1930-31 -$1,897 66 per cent $ '574 3 per cent 

1932- 33 - 1,572 69 per cent (1,171) 10 per cent 

1933- 34 - 1.470 54 per cent (2,510) 24 per cent 


The percentages after each figure indicate the proportion which the net expense 
is of the total expense in each case. Where fees exceed total expenses the amount 
of the excess (net revenue) and its per cent of the total expenses are shewn in paren¬ 
theses. This condition is a cause in part of the serious revenue problem in some of 
the counties with low property valuation: for that portion of the cost which is not 
covered by fees must be borne by ad valorem taxation. When fees are small or sud- 
den’y fall off, it becomes difficult for these counties to raise sufficient revenue under 
the constitutional tax-rate limit of fifteen mills. 








ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


209 


Cost and Volume of Work. Since fees are uniform throughout the state and since the 
amount of fees collected depends on the volume of business done, the collection of fees 
forms a good though rough index to the volume of work done in the clerks’ offices and 
to the unit cost of the work. Eight counties are shown in the following table to illus¬ 
trate the lack of uniformity which exists In the volume of work per person employed 
and in the total cost per dollar of fees collected In the several offices of county clerk. 
The amount of fees collected range from $750 per person in Adair County to $2,833 in 
Logan County. The total cost of the clerk’s office ranges from $0.01 in Oklahoma 
County to $1.85 in Adair County. It is evident that some counties get more from their 
employees than others, andS also that some counties get more for their money. 



Estimated 

Size of 

Pees Collected 

Total 

Total Estimated 


Current 

Present 

Per Person 

Appropriation 

Cost Per Dollar 

County 

Annual keep 3 

Staff * 2 

Employed 

1934-35 

Fees Collected 

Adair 

$1,500 

‘> 

$ 750 

$ 2,770 

$1.85 

Woodward 

4,500 

4 

1.125 

5,365 

1.19 

Cleveland 

7,500 

4 

1,875 

7,154 

0.95 

Logan 

8.500 

*:c 

2,833 

8,988 

1.06 

Muskogee 

9,000 

*7 

1,286 

14,474 

1.61 

Seminole 

12,000 

*c, 

2,000 

12,850 

1.07 

Tulsa 

85,000 

*14 

2,500 

36,139 

1.03 

Oklahoma 

90,000 

41 

2,195 

81,900 

0.91 


These differences depend partly on differences in the salary scale, partly on the 
fact that some counties make more use of labor-saving machinery than others, and 
partly on the systems and organization employed. It is to be expected that a salary 
scale which is based on the population of the counties will not everywhere be pro¬ 
portionate to the counties’ business. There is a minimum sakiry for the chief officer, 
for example, which must be paid regardless of the volume of work in order to get a 
chief officer at all. This, with the fact that the present! statutory organization of the 
clerk’s office practically requires that he employ at least one deputy, explains largely 
the high unit cost of operations of the clerk’s office in Adair County. The use of pho¬ 
tostatic machines may sometimes account for an unusually small staff. In Wood¬ 
ward County, for example, it requires four people without a machine to do roughly 
half the work that is done in Logan County by three people with a machine. On the 
other hand, it is evident that a pliotostatic machine is no automatic substitute for 
employees. Machines are used in both Muskogee and Seminole counties; yet seven 
people are employed in Muskogee to de three-fourths of the work done by six people in 
Seminole. 

Much of the efficiency with an office functions must, be attributed to its or¬ 
ganization and system. Dividing the work into an appropriate number of tasks and 
delegating responsibility for each job among the several employees of the office is a 
way of utilizing the labor force in an efficient manner. The ease with which each 
job is done, and the speed with which work passes from one employee to another, or to 
its proper place in a file or record, are matters for the systematic arrangement of 
persons, equipment and working space. No formula can be given for a “model system’’ 
which will not seem absurd in particular cases; but a great deal can be done by the 
officer in charge to improve both the organization and system, as is indicated by the 
number of suggestions received by the several officers with whom consultations were 
held. 

Reorganization. The complexity of the clerk’s functions lias been discussed. As- 
the office is now organized, in every county there are two divisions— the registry, and 
the clerk’s division. In the chapter of this report which deals with financial ad¬ 
ministration, it is recommended that all matters connected with accounting, auditing, 
and reporting be delegated to a competent financial officer whose selection should be 
carefully made. With the reorganization of the clerk's office as proposed, the staff of 
the clerk’s division could be reduced to a clerk of the board of county commissioners, 
who might have an assistant or stenographer in the larger counties’ ,and who could 


3 Rough estimate based on last four years’ collections; does not include cigarette licenses. 

^Includes county clerk, and full time employees whether ranked as deputies or extra help. 

3 An asterisk indicates that the county employs a photostat machine for copying and 

recording. 









210 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


he appointed by the chairman of the board of county commissioners. The. county 
clerk could then devote his entire attention to the duties of register of deeds. 

The effect of the proposed reorganization on the cost of the clerk’s office can be 
illustrated with reference to four of the eight counties dealt with in previous para¬ 
graphs. In most cases the effect would be similar to that of dispensing with the chief 
bookkeeper and his assistants and replacing them with a clerk of the board. The 
clerk could head the registry division. The chief bookkeeper is usually the first deputy 
and in making the calculations for the following tab.e, it is assumed that the gross 
saving in every case would be at least the equivalent of the first deputy’s salary. The 
savings which could be made through better organization if the county c erk became 
register of deeds and had the one job to do are difficult to estimate. In some cases 
a deputy might possibly be saved in the registry division. In other cases part-time 
work might be dispensed with. 

In Table II no guesses are attempted regarding further savings. The gross sav¬ 
ing in every case is the total salary paid to the bookkeepers where it can be segre¬ 
gated. The net saving is found by subtracting an arbitrary amount from this for 
hire of clerk to the board of commissioners. In any case the table is to be treated 
as an illustration of the minimum that might be saved. It is not to be regarded as 
stating what, in the opinion of the survey, ought to be saved. 


TABLE II 

MINIMUM SAVING POSSIBLE THROUGH REORGANIZATION OF COUNTY 
CLERK’S OFFICE. BASIS OF CURRENT YEAR’S DATA 


County 

Number of 
Deputies. _ 
Eliminated 

Gross 

Savings 

Hire of Clerk 

! on Board of 
Commissioners 

Net 

Savings 

Adair 

1 

$ 720 

$ 720 

$ - 

Cleveland 

1 

1,090 

720 

370 

Seminole • • 

2 

2.700 

1,200 

1,7)00 - 

Oklahoma 

9 

15,360 

3.000 1 

12,?60 


Jn a county such as Adair where the clerk is allowed one deputy at $720 a year, 
there is little opportunity for saving. The clerk’s salary of $1,440 a year is no more 
than is due a qualified register of deeds; and a clerk for the board of commissioners 
could scarcely be paid less than $720. In the larger counties, however, savings may 
lie considerable. 

At present the clerk appoints a deputy to serve as register. With a reorganiza¬ 
tion such as that proposed, he himself could be selected for his qualification as register 
of deeds. The duties Qf register are clerical duties requiring training and some knowl¬ 
edge of law. They are duties for which a person may prepare himself; and his prepa¬ 
ration and aptitude may be tested by examination. There is no need to argue for the 
appointment of the register of deeds in Oklahoma. It is largely recognized that there 
is no reason for e'ecting a register of deeds; that in the interest of preserving reliable 
legal records, there is every reason for having him appointed As time goes on the 
necessity of having accurate records carefully kept is increasingly important. The 
practice of appointing the register of deeds should be continued, and if possible on 
the basis of impartial examination. 

The office of county clerk should be reorganised along the following lines'. 

a. The clerk’s division should be abolished, and the board of county commissioners 
should be furnished with a clerk who might be allowed an assistant where required. 

b. The register’s division should be headed by a ranking county officer with the standing 
of the present county clerk. 

Adoption of this recommendation will require the repeal of Chapter 161 of the 
Laws of 1913, by which the office of register of deeds was merged with that of county 
clerk. 

The act which provides for the clerk of the board of county commissioners should pro¬ 
vide for his appointment by the chairman of the board. 


Includes assistant. 






ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


211 


The act which restores (with whatever title) the register of deeds should provide for his 
appointment by the county or district court from a list of eligibles selected in accordance with 
the appropriate state or county personnel law. 

Adoption cf the second and third proposals will require amendment of Section 7606 
of the 1931 Statutes which provides for the election of a county clerk in all organized 
counties. As an alternative to the proposed reorganization of the clerk’s office it is 
recommended that: 

The county clerk should be relieved of all duties which are duplicated by other officers; 
and he should be appointed in a manner similar to that proposed for the register of deeds. 

Conversations with more than 30 county clerks indicate the need of an intensive 
study of (1) the way to organize the office of register of deeds, (2) methods of re¬ 
cording, filing and indexing legal instruments and keeping and indexing plat records, 
(3) the best way of relating salaries to the volume of business handled. Study should 
also be made of the relation between the work of the assessor of deeds, especially of 
the method by which the assessor may be furnished information regarding, title 
changes, actual consideration in real estate transfers, value of mortgages recorded, and 
other matters important in the assessment of property. 

COURT CLERK 

Every county has a court clerk elected for a two-year term. Before entering 
office, he must give bond to the state of not less than $2,000 nor more than $40,000 to 
be lixed by the board of county commissioners. 

This office like the county clerk’s, is the result of consolidation. In this case, 
three officers were brought together; the clerks of the district court, the county court, 
and the superior court. The district court clerk was created bs r the Constitution (Art. 
XVII, Sec. 2) ; the county court clerk, by a general statute affecting all counties; 1 and 
the superior court clerk, by special act when and where a superior court was created. 2 
The offices of the three clerks were abolished in 1913 by the act which abolished the 
register of deeds ; 3 and their functions were assigned to the “court clerk.” 4 

Functions. The court clerk keeps the records, books, bonds and papers appertain¬ 
ing to the courts and court cases, and records coiirt proceedings. He keeps various 

appearance, judgment, and executive dockets; and his records include those of chil¬ 

dren’s cases, probate cases and all civil and criminal cases of the county, district and 
special courts. In addition to keeping the records of the courts the court clerk issues 
marriage licenses and all writs and orders of the courts which he is empowered and 

required to issue. He also has charge of the court fund and of deposits made in civil 

cases and keeps account of the sheriffs’ and deputy sheriffs’ earnings, which he pays 
from a depository account maintained with the county treasurer. 

Personnel. In the court clerk’s office, education and experience are necessary. The 
duties are semi-professional, requiring clerical experience and some legal knowledge, 
but no mention of qualifications appears in the statutes except that the clerk must 
be a voter. Nevertheless, the court clerks interviewed appear to be highly qualified 
persons. 

Of 29 clerks interviewed, all but one were 25 years old or older. All had re¬ 
ceived at least a graded school education. Twenty-two had finished high school. Eight 
had two years of college training; and an equal number had taken clerical courses 
from some business or correspondence school. Three were studying or had studied 
law. Their occupational experience was varied. Six had previously been in politics; 
and the same number, in mercantile business. Six had been clerks or bookkeepers; 
four, school teachers; three, post office clerks; two, farmers; one, a lawyer; and one, 
a barber. Notwithstanding this comparatively favorable showing, only five of the 29 
clerks■ interviewed had held office for four years or more, and few if any had received 
previous training related to their.work. With a term of only two years and a double 

’Laws 1910, Chap. 69. Sec. 15. 

2 Stat. 1931. Chap. 21, Art. 4; for example Secs. 3S?7 and ,3895. t 

3 Laws 1913; Chap. 161. 

, fLaws 1913, Chap. 161, .Sec. 1., . , , . . . . , ...... 



212 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


primary election, the chances, are overwhelmingly on the side of a comparatively rapid 
“turn-over” in the court clerks’ offices. The chance of getting and keeping trained 
officials in the court clerks’ offices is small. 

There is no more reason for electing the court clerk than there is for electing the 
register of deeds. The purely administrative functions of his office raise no issue of 
local self-government. They are duties for which a candidate can make prevaration; 
and both his preparation and his aptitude can be tested by examination. 

Results of Consolidation. Consolidation of the several court clerks’ offices, unlike 
that of the county clerk and register of deeds, appears to have been a well-advised move. 
Tasks of the same essential nature have been combined; and, where full advantage 
has been taken of the change, the result has been to systematize the work of keeping 
and indexing records and to provide an efficient office for the receipt and issuance 
of legal papers. In many cases, however, there has been no change in the location or 
arrangement of the offices over which the clerk has charge, with the result that the 
offices are not connected and may not even be on the same floor of the court house. 

Cost. The total cost of the court clerks’ offices for each of the past four years 
is shown below with the yearly average and the amount appropriated for the current 
year. 


1930- 31 _$ 516,649 

1931- 32 _ 444,841 

1932- 33 _ 376,490 

1933- 34 _ 346,963 

Yearly average - (421,236) 

1934- 35 (Appropriation) - 312,378 


As in the case of the county clerk, the cost per county varies widely, ranging in 
1933-34 from $1,495 in Latimer County to $35,616 in Oklahoma County. Salaries 
are fixed by statute according to the same scale which determines the county c’erks' 
salaries. Again, the chief variable is the amount expended for clerk hire. In Lati¬ 
mer, no expenditures were made for this purpose. In Oklahoma County, the total was 
$29 920. 

Fees. The 77 court clerks collect a total of about. $400,000 in fees compared with 
an expenditure of about the same amount, the fees collected constituting a rough 
index to the volume of the court clerk's work. Prior to 1933, ail the court clerk’s 
fees were returned into the county general fund; but Chapter 117 of the 1933 Laws 
created a special fund designated as the court fund. Since then, all fines, fees, and 
forfeitures which the court clerk, collects and which belong to the county are deposited 
in the court fund to defray the expenses of the district and county courts. No men¬ 
tion of marriage licenses is made in the statute creating the court fund; and fees 
from such licenses are turned into the county general fund. The county financial 
statements do not present a conso’idated account of the receipts and expenditures of 
the court funds so that time has not permitted the assembling of current data on which 
to base calculations of cost and volume of work such as were made in the case of the 
county clerk. It is possible, however, to make these calculations for 1932-33; and they 
are presented below. 


County 

Fees Collect¬ 
ed 1932-33 

Size of 
Present 
Staff 1 

Fees Col¬ 
lected per 
Person em¬ 
ployed 

Total Expend¬ 
iture 1932-33 

Total Cost 
per Dollar 
of Fees Col¬ 
lected 

Adair 

.$ 1,834 

1 

$1,834 

$ 2,090 

$1.14 

Woodward 

2,517 

2 

1,259 

3,209 

1.27 

Logan 

5,074 

3 

1,691 

4,902 

0.97 

Cleveland 

5,523 

3 

1,874 

3,744 

0.67 

Seminole 

8,378 

5 

1,676 

11,350 

1.35 

Muskogee 

10,470 

5 

2,094 

12,257 

1.17 

Tulsa 

38,044 

14 

2,717 

32.138 

0.84 

Oklahoma 

54,189 

24 

2,258 

38,088 

0.70 


These figures indicate wide variation in volume of work per person and in total 


The size of the staff is assumed not to have changed materially in the past two fiscal years. 














ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


213 


cost per dollar collected. There is not the same opportunity to employ labor-saving 
machines in the court clerk’s office as in the county clerk’s, although some use can be 
made of photostatic machines. Variations are due chiefly to differences in the salary 
scale and in organization and system. 

What is said 1 of organization and system in connection with the county clerk ap¬ 
plies with equal force here. Wide variations in the cost of the court clerks’ offices 
suggest the need of further study. Administration is hampered in many cases by the 
fact that divisions of the office are located in different parts of the court house. This 
condition sometimes calls for the hire of an extra deputy in order that service may 
be given where required. The advisability of assigning the management of the court 
cash fund to the court clerk is Questionable. The financial aspects of this fund are 
treated in the chapter on financial administration; and the point is made that a sepa¬ 
rate court fund adds unnecessary complications to budgeting and other financial oper¬ 
ations. Here, the court fund must be objected to on the ground that its administration 
involves duties not properly assignable to the court clerk. His office is not equipped 
for bookkeeping; and the routine of accounting for many small sums is a task which 
he should not be expected to undertake. 

The court clerk should he appointed by the county or district judge from a list of 
eligibles submitted in accordance with whatever personnel law is made applicable to county 
officers, and he should remain in office during good behavior. 

This recommendation calls for amendment of Section 7606 of the 1931 Statutes. 

All fees collected by the court clerk and belonging to the county should be turned into the 
county general fund, and the court clerk should be relieved of the task of managing the 
court cash fund. 

This latter recommendation calls for repeal of Chapter 117 of the Laws of 1933 
and enactment of suitable legislation. 

COUNTY SURVEYOR 

The office of county surveyor was originally provided by the Constitution (Art. 
XVII, Sec. 2). It has been abolished by statute in several counties, however, for ex¬ 
ample in Beaver (Laws, 1927, Ch. 129) and in Texas (Laws 1927, Ch. 128). A county 
surveyor is now maintained in 64 counties according to the roster of county officers 
issued. 

The county surveyor is an elected officer, with a two year term running from the 
first Monday in January following his election. No provision is made specifically for 
the selection of deputies or assistants, but mention is made of “chainmen” who “must 
he disinterested persons,” in case a disputed boundary is to be surveyed; mention is 
also made of “chainmen” and “other assistants” who “must be paid for their services 
by the person for whom the survey is made” ; and the county surveyor “is authorized 
to administer oaths to all of his assistants in making all surveys directed by the district 
or county courts or board of commissioners.” Mention of “deputy” occurs in connec¬ 
tion with the administration of “oath or affirmation to any witness who may be brought 
to prove any corner or line” of his survey, the surveyor or his deputy being authorized 
to administer the oath. In counties where no surveyor is provided, or in any county 
when the surveyor is disqualified or absent from the county, the “regularly elected 
and qualified” surveyor of any other county or any duly qualified county engineer may 
act for him and the acts of the substitute are legally binding. 

The statutes are silent regarding eligibility for office of surveyor except that the 
surveyor shall be a “qualified voter of the county.” 

Duties. The county surveyor makes surveys of both private and public land, the 
former on request of any bondsman or his representative, the latter on order of the 
courts or board of county commissioners; and his surveys are presumptively correct. 
Besides surveying land, under order of the county commissioners, he may make com¬ 
plete surveys, plans, specifications, and estimates for all bridges, culverts, roads, ditches 
or other public works to be constructed under authority of the county commissioners; 
and, when ordered to do so, superintends construction Of siuch work, reporting to the! 
commissioners whenever they require. The commissioners may, if they wish, employ 
a civil engineer to act alone or work in conjunction with the county surveyor in such 


214 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


work. He must transcribe all field notes and place them into permanent record 
books whenever the commissioners deem it advisable. It should be noted that the sur¬ 
veyor may be required to serve in the capacity of an engineer on occasion, and that the 
responsibility for determining his qualifications devolves on the commissioners. 

Expense. The county surveyor apportions the cost of a survey “among the land- 
owners interested, according to their respective interests.” Unpaid costs are reported 
to the county clerk who levies a tax on the property. When land is not taxable, the 

surveyor may require a bond to be executed, payable to him. Thus, the surveyor is 

charged with duties which belong properly to the assessor and treasurer. 

The total cost of the county surveyors in the state is shown below for each of the 

past four years with the yearly average and the amount appropriated for the current 

year. 


1930- 31 _$ 19.798 

1931- 32 _ 20.929 

1932- 33 _ 22 281 

1933- 34 _ 15,538 

Yearly average _ (19.037) 

1934 35 (Appropriation) _ 14,441 


During the fiscal year 1933-34, 57 counties hired the services of a surveyor. Of 
the total cost of the 57 surveyors’ offices 86.5 per cent was the surveyors’ salaries. The 
other 13.5 per cent included expenses for fees and special services field supplies and 
instruments, office supplies, postage, telephone and telegraph, furniture and office equip¬ 
ment. 

There is a high degree of uniformity in the cost per county of the surveyor’s of¬ 
fice. Forty-eight of the 57 counties employing a surveyor in 1933-34 spent $300 or 
less. The cost, therefore, has more effect on the tax rate in counties with low valuation 
than in those with high valuation. There is not much reason to quibble over such petty 
expenditures; but the statutes permit counties to make use of surveyors employed reg¬ 
ularly by other counties, so that opportunity for economy is offered. 

Most of the surveyor’s work is done for the county without extra charge. Thus, 
there is no satisfactory index to the volume of the surveyor’s work. From 1930 to 
1934, only two instances are recorded of revenues received by the surveyor. Both of 
these instances occurred during 1933-34, one in Johnston amounting to $156 and one in 
Creek amounting to $1,267. The financial statements do not indicate the nature of this 
revenue. 

The surveyor should he appointed when a county requires such services, by the hoard of 
county commissioners from a list of eligibles submitted in accordance with such personnel 
law as is made applicable to county officers. 

The surveyor should not be allowed to perform the duties of the county engineer except 
when qualified to do so. 

To make provision to meet the requirement of this proposal will require amend¬ 
ment of Section 7795 of the 1931 Statutes which] permits the commissioners to call mi 
the surveyor for engineering work. 

The surveyor should not be responsible in the case of a private survey, for apportioning 
the cost among the property owners. Apportionment should be made by the assessor on the 
basis of the surveyor’s statement of expense submitted to him. 

The surveyor should not be responsible, in case of a private survey, for collecting the 
costs. The treasurer should make these collections on the basis of the surveyor’s statement of 
expense. 

Uncollected costs should become a lien against the property assessed for those, costs, 
and, should, be treated as other liens. ... 

_ In. the case of the survey of private land which is not taxable the bond to be executed 
should -be made payable to. the. county.. 

V The-above proposals call for amendments to Section 7606 and 7802 of the' 1931 
Statutes... r . ■' <•. , 








ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


215 


THE PUBLIC WEIGHER 

The county public weigher is a two-year elective official maintained in 37 coun¬ 
ties according to the roster of county officers. He may appoint, with the approval of 
the board of county commissioners, one or more deputies for each precinct in his 
county, their respective jurisdictions! to be the precincts for which they are appointed. 
To be eligible for the office of weigher one must be a voter and a resident of his coun¬ 
ty. No person may be “appointed as a county weigher or deputy county weigher or weigh 
for the public who is in any wise interested as a dealer or speculator or as an agent] 
or employee of any firm, company or corporation in the sale or purchase of cotton, 
grain, livestock, hay, cotton seed, broom corn and all other farm products sold by 
weight.” 

The weigher must execute a bond to the county,] approved by the commissioners, in 
the sum of $2,000. His deputies must each execute a bond to him in the amount of $500. 

Functions. The functions of the weigher are to receive, inspect and weigh, cotton, 
grain, livestock, hay, coal and wood, and all other “farm products” sold by weight and 
to preserve suitable record of their weight which is taken as the legal weight of those 
commodities. His office, equipment], and supplies must be furnished at his own ex¬ 
pense and those of his deputies the same. Cattle must be weighed whenever buyer 
and seller demand it, “a fee to be paid equally by the seller and purchaser” and the 
weigher must provide a suitable enclosure for such purpose. He is not required to 
weigh vegetables, poultry, eggs or dairy products. In the case of cotton it is his duty 
to keep a record of all the marks appearing on each bale weighed so that it can be 
identified afterwards by anyone desiring information about it. 

The scales of the weigher are inspected and sealed by the sheriff or his regular 
deputy. No provision is made for the regularity of these tests except that they may 
be made at any time on signed request from five citizens but not oftener than once in 
30 days. 

Since the county makes no appropriation for the cost of the weigher’s office, and 
since none of his receipts are paid into the county treasury, no report is made of the 
receipts or expenditures of the county public weighers. 

The election of the weigher is an unnecessary expense. Perhaps it would be 
simplest for the board of county commissioners to appoint a public weigher in each 
precinct of the county, or wherever one is requested by a certain number of residents. 
It is recommended, therefore: 

That a public weigher, or as many as may be requested for each precinct in the county, 
be appointed by the board of county commissioners, subject to such personnel lazv as may 
become applicable to county officers, for term of good behavior. 

Such bonds as may be required should be made payable to the county. 



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PART III 


FINANCIAL ADMINISTRATION 










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CHAPTER XV 

STATE FINANCIAL ADMINISTRATION 

The state government of Oklahoma ia handicapped today because of lack of financial 
control by its chief executive, the Governor. Until Oklahoma adopts a modern budget 
system, an effective financial organisation, and an up-to-date system of financial ad¬ 
ministration, and abandons its present spoils system, it will continue to operate under 
adverse conditions. 

Of the several factors entering into the problem of efficient government, possibly 
none is of greater importance than that of financial administration. A large part, 
probably more than half, of the time of the legislative branch is devoted to considera¬ 
tion of financial measures: What revenues shall be raised; how they shall be col¬ 
lected, cared for and disbursed; what provision shall be made for meeting the expendi¬ 
ture needs of the government and the conditions to be observed in making such expendi¬ 
tures. On the administrative side, there is scarcely an act of government that does 
not have its financial aspects. The fact that an accurate record, susceptible of veri¬ 
fication, must be kept of every penny of income due the government and collected, and 
of every penny expended, means that practically every act of government must be 
reflected in the financial records. These records constitute at once the most important 
instrument of control over the fidelity and efficiency with which government officers 
perform their duties, the means of affording information regarding operations, and 
the basis for determining future needs. 

Government may be likened to a private business. To be successful it must have 
a proper and efficient organization, a well-designed plant, and an effective system of 
distribution. Oklahoma needs simplified organization, qualified and well-trained per¬ 
sonnel, and modern business and accounting methods. 

The state has made little progress in improving its financial organization and 
procedure since statehood. This is due in part to its Constitution and in parr to its 
statutory laws. In 1919, the state legislature made some progress in reforming the 
state’s financial administration by the enactment of the budget law; but, unfortunately, 
this act did not provide for budgeting all of the funds of the state government and 
neither did it give the Governor authority to execute the budget after enactment of 
the appropriation measures. 

Present control over the financial operations of the state government is too diffused 
to be effective. This is largely due to: (1) Duplication of accounting and auditing 
authorities; (2) the existing system of decentralized disbursing, which does not even 
permit of post-auditing all of the disbursements of the departments and institutions; 
and (3) the ineffective system of accounting and reporting of the State Auditor’s 
office. 

PRESENT FINANCIAL STRUCTURE • 

Under the present organization there is no single agency responsible for financial 
administration or for exercising control, no central agency responsible for accounting 
for all public funds, and no published report containing information with regard to 
all state financial operations. Excluding the State Tax Commission, the Commissioners 
of the Land Office, and the Commissioner of Pensions, which are treated in other chap¬ 
ters, the following nine agencies share the duties and responsibilities of administering 
the financial functions of the state government: 

1. The Governor, a constitutional office with certain constitutional and statutory 
financial duties. 

2. The Budget Officer, a statutory office. 

3. The State Treasurer, a constitutional office. 

4. The State Auditor, a constitutional office. 

5. The State Examiner and Inspector, a constitutional office. 

• 6. The State Depository Board, a statutory ex-officio board. 

7. The State Bond Commissioner, a statutory ex-officio office. 

8. The State Fiscal Agency, a statutory agency. 

9. The State Board of Public Affairs, a statutory board. 

It will be observed that of these nine agencies, four are constitutional and five 


220 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


are .statutory, with two of the latter ex-officio in character. The fiscal duties of the 
above agencies are outlined below. 

The Governor. Under Section 12 of Article VI of the Constitution, the Governor 
has the power to veto appropriation bills or any item which he disapproves in such 
bills. He is th e Chief Budget Officer of the state government and as such he is re¬ 
quired by Chapter 27, Article 1 of the Oklahoma Statutes, 1931, to hold public hearings 
on the budget, to make surveys of officers and departments, submit a printed 
budget to the legislature within five days after the beginning of each regular session 
and, finally, to submit copies of tentative appropriation bills to the presiding officer 
of each House, at the time he submits his budget document to the legislature. 

Other fiscal duties are assigned to the Governor by the statutes; for example, he 
must authorize all out-of-state travel of all highway officers and employees/ and he 
is authorized to designate a national bank in the City of New York or some trust 
company in that city, which is a member of the Federal Reserve system, as the fiscal 
agency for the payment of bonds and coupons issued by the state, or any of its polit¬ 
ical subdivisions, which, by the terms of said bonds, or coupons, are made payable in 
the City of Ne*w York. * 2 3 

The Budget Officer. This office was created by the legislature in I923. 3 The act 
creating thisj officel provides for the appointment of a Budget Officer for a term of four 
years. He is appointed by the Governor, with the advice and consent of the Senate. 
The Budget Officer, with the approval of the Governor, is authorized to employ one 
stenographer. 

The powers and duties of the Budget Officer are given in Chapter 27, Article 1. 
of the Oklahoma Statutes, 1931. He acts for the Governor in the matter of surveying 
the state departments and institutions and the holding of public hearings on any and 
all estimates; anjd he prepares the budget document and tentative appropriation bills 
submitted to the legislature. 

The budget law gives the Governor no authority for executing th e budget after 
enactment of the appropriation bills and, in view of this, the Budget Officer’s func¬ 
tions have to do primarily with the preparation of the budget document, the prepara¬ 
tion of the tentative appropriation bills, submitted to the legislature at the beginning 
of each regular session of that body, and of occasionally surveying the state depart¬ 
ments and institutions. 

The organization of the Budget Office as of March 18, 1935, with the expenditures 
for the fiscal year 1934, is presented below: 





Continuous State Service 

Position 

Annual 

Present 

Position Other 

Salary 

Year 

Month Year Month 

Personal Services: 

Budget Officer 

Stenographer - _ _ ___ _ 

Extra help _ __ 

Total Salaries . _ 

Other Expenses __ 

Total Annual Cost 

$3,600.0ft 
1,500.00 

_- 6,475.00 

$7,081.94 

4 

1 

9 


Since the work of this office has to do with the preparation of the budget docu¬ 
ment. which is prepared only once in two years, it is recommended that this office 
be abolished and that its functions and its personnel be transferred to the proposed 
office of State Comptroller, recommended elsewhere in this report. 

The State Treasurer. The Constitution 4 makes provision for a State Treasurer and 
sets forth that he shall perform such duties as may be prescribed by law He is 
elected by the people at the same time as the Governor: holds office for four years' 
is not eligible immediately to succeed himself; must be not less than 30 years of age' 

*Stat. 1931, See. 10087. 

2 Stat. 1931, Sec. 53S6. 

3 Stat. 1931, See. 5367. * 

4 Art. VI, Secs. 1. 3 and 4. 


















ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


221 


and must “have been three years next preceding his election, a qualified elector of 
the state.” The Treasurer is a member of the Executive Department and is required 
to give a bond of $750,000. He is ex-officio treasurer of the Board of Regents of tlie 
University of Oklahoma, and he ifc ex-officio a member of the State Board of Equaliza¬ 
tion, 1 the State Depository Board, 2 and the new State Board of Public Welfare created 
in Senate Bill No. 1 of the current legislative session. 

Functions of Treasurer. r fke only provision of the Constitution with respect to 
the functions of the State Treasurer ils that he shall perform such duties as may be 
prescribed by law. Article 1G of Chapter 20 of the Oklahoma Statute, 1931, enumer¬ 
ates the genieral duties of the Treasurer with regard to the collection, custody, and 
disbursement of public funds, and the accounting and reporting therefor. These gen¬ 
eral duties are expanded in Chapter 27 of the Oklahoma Statutes, 1931. In this chap¬ 
ter are given the Treasurer’s functions with reference to the State Fiscal Agency; the 
funding bonds; the exchange and renewal of bonds; the operation of State depositories; 
the registration of “non-payable” warrants; the application of miscellaneous receipts; 
and the operation of the (so-icalled) revolving funds, school funds and the public build¬ 
ing fund. Other sections of the statutes provide that he shall be custodian of all 
securities deposited by state depositories to secure deposits of state funds; that he 
shall receive deposits of county funds where the banks refuse to put up securities 
and/or pay interest on local government deposits (Sec. 7428) ; that he shall supply 
copies of all of the receipts issued by him to cover moneys into the treasury; that he 
shall file all redeemed bonds, warrants and interest coupons with the State Auditor 
daily; that he must render daily and monthly reports of all of his transactions to 
the State Auditor “showing by classes all receipts and by funds all disbursements” ; 3 
that he shall register all dormitory bonds sold by the state; and that proceeds of all 
bon 1 sa i s shall be deposited in the state treasury. 4 

Organization aiul Cost of Treasurer’s Office. The only provisions in the statutes 
regarding the organization of the office of the State Treasurer are Section 3485, fixing 
the annual salaries of the personnel of the Treasury Department, and Sectioni 3481, 
fixing the salaries of elective officers. This latter section was amended by Chapter 
138 of the Session Laws of 1933 to reduce the salary of the State Treasurer from $5,- 
000 to $3,600 per annum. 

Internally the State Treasurer’s office is divided into (1) The Office of the Treas¬ 
urer; (2) the Cashier’s Division; (3) the Bookkeeping Division; and (4) the Bond 
and Securities Division. 

The personnel of each of the above divisions and the annual salaries paid are 
given below, together with the length of state' service of the occupants of the respective 
positions at the time of our survey: 


Annual 


Position Salary 


Office Proper of State Treasurer: 

State Treasurer _$ 3,600 

Assistant Treasurer _._ 3,600 

Chief Accountant _ 2,100 

Stenographer _ 1,800 


Total _11,100 


Cashier's Division : 

Cashier _ 2,040 

Assistant Cashier _ 1,620 

Remittance Clerk _ 1,500 

Utility Clerk (extra help) _ 1,800 

Bookkeeper (stenographer) _ 1,500 


Total_ 8,460 


Bookkeeping Division : 

Warrant Clerk _ 1,800 


HDonst. Art. X, Sec. 21. 

“Stat. 1931, Chap. 27, Art. G. 

3 Stat. 1931, Sec. 3564 as amended. 

4 Stat. 1931, Art. 26, Chap. 34. 


Continuous State Service 
Present Position Other 

Year Month Day Year Month 


5 

4 __ I- 4 

4 


1 I- *16 
1 1 II — — 


4 























ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


ooo 


Continuous State Service 


Annual Present Position Other 


Position 

Salary 

Year 

Month 

Day 

Year 

Month 

Bookkeeper _ _ 

_ 1,500 

4 





Bookkeeper _ _ 

1,500 

_ 

7 

___ 

_ 

_ 

Bookkeeper _ ___ 

1,500 

1 

— 

— 

— 

— 

Total 

6,300 






Bond and Securities Division: 







Registrar 

2.040 


_. 

30 

_ 

_ 

Assistant Registrar _ 

- 1,500 

— 

11 

— 

— 

— 

Total 

3,540 






Total Salaries 

_ _ 29,400 






Other Expenses 

15,275 






Total Annual Cost 

$44,675 







Discussion of Treasurer’s Office. The accounting system now employed in the 
Treasurer’s office collects the financial data needed by him to account for all receipts 
and the disposition of all moneys coming into his possession. It does not, however, 
record the data in the most usable form for administrative and statistical purposes. 
This is due to the “old fashioned” methods of bookkeeping now in vogue, to existing 
law establishing the so-called revolving funds for practically all departments and in¬ 
stitutions, and to the manner in which governmental revenues are now retained in, 
and governmental cost payments are now made out of, the state depository accounts. 
The bookkeeping system is also deficient because no standard revenue and fund class- 
ificationsi have been established for the guidance of the state departments and institu¬ 
tions. Such classifications are absolutely essential to the operation of a simplified 
and effective accounting system. 

The failure to have an up-to-date system of treasury accounting and reporting 

does not lie wholly with the Treasurer, since the legislatures in the past have created 

many so-called revolving funds, and have by general la-w authorized many expenditures 
out of the depository accounts of the departments and institutions, which make it 
impossible for the Treasurer, who now merely acts as a banker for these moneys, to 
exercise any control over their disbursement. These moneys are not budgeted and 
the vouchers are not pre-audited and warranted out by the State Auditor as are those 
moneys covered in to the Treasury to the credit of the general revenue and special 
funds. Our recommendations of the changes in law needed to correct this condition 
and an outline of the kind of accounts which ought to be maintained by the Treasury 
Department are hereinafter described under the 1 2 caption, “Accounting and Reporting.” 

The State Auditor. The Constitution 1 makes provision for a State Auditor. It 

provides that he shall perform such duties as may be prescribed by law. He, like the 

Treasurer, i s elected by the people at the same time as the Governor; holds office for four 
years; is not eligible immediately to succeed himself; must be not less than 30 years 
of age, and must have been a qualified elector for three years preceding his election. 

The Auditor is a member of the Executive; Department and is required to give a 
bond of $50,000. He is ex-officio a member of the Board of Commissioners of the Land 
Office and the State Board of Equalization. 3 


Functions of Auditor. The only provision in the Constitution with respect to the 
functions of the State Auditor is that he shall perform such duties as may be pre¬ 
scribed by law. The principal duties of this officer are given in Article VI Chapter ->0 
of the Oklahoma Statutes, 1931. The State Auditor is the chief accounting officer of 
the state. It is his duty to keep the central accounting records of all receipts all 
disbursements, and all assets and liabilities of the state government; to apportion all 
receipts received into the State Treasury to th e proper funds, and to pre-audit all 
claims against the state government, except certain special funds administered by 








lArt. VI, Secs. 1, 3 and 4. 

2 Const., Art. VI, Sec. 32. 

3 Const., Art. X, Sec. 21. 




























ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


223 


various examining boards permitted by law 1 to disburse their receipts independently 
of the State Auditor. His other fiscal duties in addition to those enumerated are: 
To issue and exchange registered bonds; to publish notice of the establishment of and 
change in the State Fiscal Agency; to maintain a record of all written contracts; to 
issue all warrants on the State Treasurer for the payment of all claims pre-audited by 
him; to record and disburse all trust moneys of insane persons deposited in the State 
Treasury;" to make quarterly audits of all persons or corporations with whom the 
Governor shall contract for the treatment, care and maintenance of insane persons ; * 3 to 
make deductions of 25 per centum from the monthly salaries of state officers and/or 
state employees who are delinquent on loans made to them by the Commissioners of 
the Land Office ; 4 to make a monthly report to the State Treasurer of all transactions 
recorded on his bookkeeping records; to make a semi-annual report to the Governor 
of all transactions of his office; to submit a biennial report to the legislature at the 
beginning of each regular session; and to supply the Budget Office, on or before the 
first day of November, biennially, in the even-numbered years, with the following state¬ 
ments classified and itemized in strict accordance with the budget classifications adopted 
by the Governor. 5 

1. A statement showing the balance standing to the credit of the several appropria¬ 
tions for each department, bureau, division, officer, board, commission, institution or other 
agency or undertaking, of the state at the end of the last preceding appropriation year. 

2. A statement showing the monthly expenditures and revenues from each appropria¬ 
tion account, and the total monthly expenditures and revenues from all the appropriation 
accounts, including special and all other appropriations, in the twelve months of the last pre¬ 
ceding appropriation year. 

3. A statement showing the annual expenditures in each appropriation account, and 
the x-evenues from all sources, including expenditures and revenues from special and all other 
appropriations, for each year of the last two appropriation years with a separate column 
showing the increase and decrease for each item. 

4. An itemized and complete financial balance sheet for the state at the close of the 
last preceding fiscal year ending June 30. 

5. Such other statements as the Governor shall request. 

Organization and Cost of Auditor’s Office. The only provisions in the statutes re¬ 
garding the organization of the State Auditor’s office are Section 3486, fixing the salaries 
of the personnel of the Audit Department, and Section 3481, fixing the salaries of elec¬ 
tive officers. This latter section was amended by Chapter 13S of the Session Laws of 
1933, to reduce the salary of the Statei Auditor from $6,000 to $3,600 per annum. 

The Auditor’s office is divided into (1) The office of the State Auditor; (2) the 
Pre-audit Division; (3) the Warrant Division, and (4) the Bookkeeping Division. 

The personnel, the functions of each of the above divisions, and the annual salaries 
paid are given below, together with the length of state service of the occupants of the 
respective positions at the time of the survey. 

Continuous State Service 
Annual Present Position Other 

Position Salary Year Month_Year Month 

Office Proper of State Auditor: 

State Auditor _? 3,600 _ — 1 8 

Assistant Auditor - 2,400 8 

Secretary and Stenographer-,- 1,800 — 1 

Total_ 7,800 

Pre-Audit pivision : 

Claim Auditor _ 

Assistant Claim Auditor 

Total_ 3,600 


1,800 10 

1.800 — 1 


'Laws, 1933, Chap. 88. 

3 Stat. 1931, Sec. 5035. 

s Stat. 1931. Sec. 5047. 

'Laws, 1933. Chap. 188 
8 Stat. 1931, Sec. 5370. 

















224 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


\ 


Annual 


Position Salary 


Warrant Division: 

Chief Warrant Clerk _ 1,800 

Warrant Clerk _ 1,500 

Warrant Clerk _ 1,500 

Warrant Writer 1 _ 1,200 


Total _ 6,000 


Bookkeeping Division: 

Chief A cc °uDtant _ 2,400 

Assistant Accountant_ 1,800 

Appropriation Bookkeeper (Chief Clerk) _ 1,800 

Revolving Fund Clerk _ 1,800 

Bookkeeper _1,500 

Clerk_ 1,500 

Stenographer_ 1,500 


Total_12,300 


Totll Salaries _ 29,700 

Ofher Expenses_-_ 2,320 


Total Annual Cost_$32,020 


Continuous State S’ervice 
Present Position Other 

Year Month Year Month 


12 


1 

1 


1 

1 

1 

1 

1 

1 

1 


Office Proper of S|tate Auditor. The State Auditor has general supervision over the 
work of the Auditor’s office. In addition, part of his time is devoted to ex-officio duties. 
The immediate supervision of the work of the office is by the Assistant Auditor. 

Pre-Audit Division. The function of this division is that of pre-auditing all pur¬ 
chase claims, contract vouchers and payrolls submitted for payment out of those funds 
(moneys) “covered in” to the Treasury; that is, the General Revenue Fund and the 
so-called cash funds representing earmarked receipts or special revenues restricted by 
the legislature for specific purposes. 

The audit work of this division excludes the checking of those vouchers submitted 
for payment byi the State Board of Public Affairs. The examination now made by that 
Board is accepted by the ( State Auditor except that such claims are reviewed to see that 
the required certifications and approvals are present and that the correct appropria¬ 
tion symbol is indicated on the approved vouchers. 

The pre-audit as now conducted is deficient in the following respects; (1) The 
vouchers are not audited against contract prices, except construction contracts; (2) the 
claims are not audited against agreed prices contained in open-market purchase orders; 
(3) the payrolls are not audited against agreed salary and wage rates; (4) travel vouch¬ 
ers are not audited against authorized travel orders; and (5) the warrants issued are 
mailed to the approving officers -originating the transactions for delivery to the payees. 

The pre-audit falls short in the above respects because purchase contracts are not 
now filed with the State Auditor as required by Section 3565 of the Oklahoma Statutes, 
1931; copies, of purchase orders are not forwarded to the Auditor’s office at the time of 
issuance nor are they transmitted with the claims when submitted for paym nt; no 
standard travel regulations have been promulgated for the guidance of officers and em¬ 
ployees authorized to travel within and without the state; and. finally, no payroll rec¬ 
ords are maintained to check the names and rates of persons appearing on payrolls sub¬ 
mitted for payment—the only personal service payments now subject to audit are those 
persons appearing on the regular statutory rolls since the state government has not es¬ 
tablished a routine for notifying the Auditor of the persons employed and of the rates 
of pay authorized by the Governor or by headfs of departments and institutions. The 
Auditor n <fw pays without question the persons listed on the payrolls at the rates certi¬ 
fied by the heads of departments. 

Warrant Division. The function of this division is that of preparing and signing all 
warrants issued in the payment of claims submitted to it for payment; of supplying the 
chief accountant with a daily statement of warrant disbursements, and of mailing these 
warrants to the approving officers for delivery after certification of the warrants by the 
State Treasurer’s office as to whether tli|e warrants are “payable” or “non-payable”_ 


’Paid from Highway Fund. 

































ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


225 


that is, whether money is available in the Treasury to pay the warrants upon presen¬ 
tation. 

Bocikkeeping Division. The functions of the bookkeeping division of a central ac¬ 
counting office are ordinarily: (1) The maintenance of all registers and records of or¬ 
iginal entries not maintained in the receipts and warrant (disbursement) division; (2) 
the maintenance of subsidiary and detail ledgers, such as individual appropriation and 
allotment accounts; (3) the keeping of control accounts for the fund group and the pro¬ 
prietary group; and (4) the preparation of financial and statistical statements. 

These, however, were not the functions being performed at the time) of the survey, 
in that; .(1) No central control accounts were maintained to record and control all 
moneys received and disbursed by the State Treasurer- (2) no accounts were maintained 
to produce proprietary and budget balance sheets, except some general accounts which 
have no significance, except to summarize cash and warrant transactions of the so-called 
“Treasury Account No. 1,” which represents the receipts and disbursements, of the gen¬ 
eral tfund and certain special funds known as “Cash” funds on the Auditor’s books; 
(3) no fund distinctions were made in collecting the expenditure data by functions, or¬ 
ganization units and objects of expenditure; (4) the records of revolving funds of de¬ 
partments and institutions were largely memorandum accounts; (5) the records of the 
depository accounts were purely memorandum accounts; (6) no control accounts were 
maintained of the endowment, of trust (funds received and disbursed by the Commission- 
ei*s of the Land Office; (7) no periodical reports were 1 being 1 made to the Governor and 
to the heads of departments to show the standing of appropriation and special fund ac¬ 
counts; (8) the financial statements published in the State Auditor’s Biennial Report 
contained no statements to display the results of operations under legislative appropri¬ 
ations, since they 'were primarily statements of receipts and warrant disbursements. No 
attempt was made to compare expenditures with amounts appropriated. The financial 
statements were, therefore, of little service for budget making or for controlling budget 
operations. 

Discussion of Auditor's Office. Reference to the organization outline discloses that 
the present State Auditor upon taking office, January 14, 1935, retained but three of the 
staff employed by his predecessor; and none familiar with the bookkeeping details of his 
office. This practice of replacing trained employees every four 1 years has been the cus¬ 
tom since statehood. The absence of a merit system offers little incentive to state em¬ 
ployees to become proficient in their respective jobs. The constant training of hew and 
inexperienced employees, who, without knowledge of governmental bookkeeping, of state 
laws, and of rules and regulations governing the receipt and disbursement of public 
moneys is not only expensive but no doubt accounts for the inadequate and antiquated 
methods now employed in the State Auditor’s office. This office as now operated is little 
more than a warrant issuing and record office. 

The framers of the budget la;w and Chapter 159, Session Laws, 1915, contemplated 
that the State Auditor would maintain all those accounts needed to control and report 
the financial operations of the state government. An examination shows, however, that 
the present system does not even supply him with the data needed to report the exact 
standing of the appropriation accounts much less a “ . . . complete financial balance 
sheet for the state at the close of the last preceding fiscal year . . .” 

The absence of uniform classification of funds, appropriations, revenues and expendi¬ 
tures and the present pen and ink system of bookkeeping precludes the ready prepara¬ 
tion of current financial data such; as that outlined in the budget act. 

The Auditor has no control at the present time over the receipt (and disbursement 
of any funds of the state government other than the general fund and the so-called spe¬ 
cial (cash) funds, the receipts of which are “covered in” to the State Treasury. He has 
no effective control over the moneys; now deposited in the so-called revolving funds and 
no control whatever over the moneys deposited in and paid out of the depository ac¬ 
counts of the departments and institutions. 

In view of the fact that this report recommends that the duties of th e State Au¬ 
ditor be restricted to post-auditing and examining the financial operations of the state 
departments and establishments, eventually the State Auditor’s duties should be ex- 


226 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


tended to the audit and examination of the .fiscal affairs of local governments. Con¬ 
sideration should also be given to amending the Constitution to require the State Au¬ 
ditor to he elected by the legislature. 

State Examiner and Inspector. The State Examiner and Inspector is a consti¬ 
tutional officer and its eligible to succeed himself. He must have had at least three years’ 
experience as an expert accountant, in addition to 1 * the usual qualifications required of 
state elective officers/ He is a member of the Executive Department and is required to 
give a bond of $15,000. He is ex-officio a member of the State Board of Equalization. 

Seme of the duties of the Examiner and Inspector are laid down in the Constitu¬ 
tion. These include the duty of prescribing a uniform system of bookkeeping for the 
use cl all treasurers, and of examining 1 at least twice in each year, without previous 
notice, the books, the accounts, and the cash on hand or in banks, in charge of the 
State Treasurer and each county treasurer. A report of the examination must be pub¬ 
lished at least once each year. Statutes supplement <lie Constitution in respect to the 
examiner’s duties. His statutory duties, as given in Article II of Chapter 20 of the 
Oklahoma Statutes, 1931, are: To audit the accounts of the ,State Treasurer and coun¬ 
ty treasurers semi-annually; to audit the accounts of all county offices every two years; 3 
to make annual and special audits of the Highway Commission and State Tax Com¬ 
mission ; to audit each year the books of the Conservation Commifesion; to audit an¬ 
nually all other state departments; to examine and report at least once* each year upon 
the books and financial accounts of all state educational, penal, and eleemosynary insti¬ 
tutions ; to prescribe) and enforce correct methods of accounting in all state institutions; 
to prescribe an effective system of accounting for the Commissioners of the Land Of¬ 
fice ; 4 to prescribe a uniform system of bookkeeping for the Free Fhir Boards, and to 
devise and install a uniform system of bookkeeping for the State Treasurer, county 
treasurers and all other county offices. In addition, he is required to examine and re¬ 
port his findings to the Governor in the report required to be filed quarterly by the 
State Board of Affairs; 5 to audit the accounts of all drainage and irrigation districts; 
to audit the books and accounts of independent school districts upon the written request 
of 25 per cent of the legal voters of such districts; to examine and report his findings 
on each and every claim filed for refund of the gross production tax; and finally, he is 
required to render an annual report to the Governor on the first day of November of 
each year to “report statistics of 1 the state institutions, of the county and state finances 
ascertained by him, which report shall be printed to the number of five hundred copies 
and shall be included with other officers’ reports in the volume of executive documents.”® 

Organization and Cost of Office of State Examiner and Inspector. The qualifica¬ 
tions and salaries of the regular assistants for the State Examiner and Inspector are 
fixed in Sections 3509 to 3515 of the Oklahoma Statutes, 1931. Other examiners are 
authorized in Section 101091 for the Highway Commission audit, the expense of which is 
not to exceed, $9,000 per annum; and additional assistants are also authorized by Chap¬ 
ter 40, Session Laws, 1933, to perform the biennial and special- audits of all county of¬ 
ficers who collect or disburse moneys, fees, fines, or public charges of any kind includ¬ 
ing tax rolls, and an audit of each of the Justices of the Peace within each county. 
These assistants are paid by the countiesl out of the special levy authorized for such 
purpose in Section 5 of said act. This law fixes the salaries of the head deputy ex¬ 
aminers and assistants at the same salary and expenses provided by law for the regu¬ 
lar staff. 

The internal organization of the regular personnel of the State Examiner’s office, 
as of March 1, 1935, is given below; 


^onst., Art. VI, Sec. 19. 

J Const., Art. X, Sec. 21. 

3 Laws, 1933, Chap. 40. 

4 Laws, 1933, Chap. 189. 

B Stat. 1931, Sec. 3578. Now filed annually. 
°Stat. 1931, Sec. 3731. 




ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


227 


Position 


Office Proper of the Examiner and Inspector: 

State Examiner and Inspector _ 

Assistant Examiner_ 

Total __ 

Departmental Audits: 

Head Deputy Examiner_ 

Deputy Examiner_ 

Deputy Examiner _ 

Total _ 

Penal and Eleemosynary Audits: 

Head Deputy Examiner _ 

Deputy Examiner_ 

Total _ 

State Educational Audits: 

Head Deputy Examiner_ 

Deputy Examiner _ 

Total _ 

County Treasury Audits : 

Head Deputy Examiner _ 

Deputy Examiner _ 

Deputy Examiner _ 

Deputy Examiner_ 

Deputy Examiner ___ 

Total _ 

Report Section: 

Deputy Examiner _ 

Clerk _ 

Stenographer_:_ 

Stenographer _ 

Total _ 




Continuous 

State Service 

Annual 

Present 

Position 

Other 

Salary 

Year 

Month 

Year Month 


S.OOh 1 8 

2.400 

5.400 

2.400 5 

2,000 5 

2,000 1 


6.400 

2.400 5 

2,000 2 


4.400 

2.400 2 

2,000 4 


4.400 

2.400 5 

2,000 7 

2,000 3 

2,000 3 

2,000 2 


10,400 

2,000 10 

1,500 3 

1,500 8 

1,500 3 


6,500 


2 

1 


6 

6 

6 


6 

1 


6 

4 

7 

6 

9 


3 


2 


2 


3 8 


Total Salaries - 37,500 

Other Expenses —..._:-15,313 

Total Annual Cost_-_$52,813 


It will be observed that the length of services of the regular staff of this office 
ranges from one and one-half years to ten years and three months. This is probably 
due to the requirement that the examiners must have had at least three years’ experi¬ 
ence iin municipal accounting in the state, and because the present State Examiner and 
Inspector has been in office for over eight years. 

Discussion of Slate Examiner. The State Examiner is now performing -work in 
two fields; Accounting and auditing. He is now required to make 342 audits a year of 
which 154 are audits of county treasurers’ office. He has never audited the State Au¬ 
ditor’s office. He has never been in a position to keep his work current because of 
legislative restrictions on the number of examiners he may employ. 

The State Examiner has managed to outline a uniform system of accounting and 
reporting for all state institutions, conforming to the standard expenditure classifica¬ 
tions promulgated by the Governor under the (Budget Act ofi 1919, and he has installed 
a uniform system of accounting for county treasurers and county governments; but 
these systems need modernization, particularly the system prescribed for local govern¬ 
ments. This has not been accomplished largely because of the small force appropriated 
for heretofore, and because of the difficulty of obtaining men qualified in modern gov¬ 
ernment accounting at the salaries fixed by the legislature. He has also devised a com¬ 
bined warrant register and appropriation ledger for the state departments; but this 
book falls far short of the departmental system needed to be of real service to the ad¬ 
ministrative officers in accounting for all receipts, deposits, and appropriation and spe¬ 
cial fund expenditures. 

In, our examination of the system now in use, it was noted particularly that no 
uniform classifications of funds, receipts, and appropriations have been promulgated 


’Salary reduced from $5,000. Laws, 1933, Chap. 138. 



















































228 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


for the guidance of the departments and state institutions. The absence of such classi¬ 
fications no doubt accounts in part for the inadequate reports now submitted by the 
State Auditor’s office, the State Treasurer’s office, and the operating departments and 
institutions of the state government. 

The difficulties which now arise from having the Governor promulgate the budget 
and accounting classifications, ;and the State Examiner and Inspector prescribe the ac¬ 
counting systems of state departments and institutions should be obviated by assign¬ 
ing all such functions to one official. Neither the State Examiner and Inspector nor 
the Governor should possess these functions. These! should be the functions of a cen¬ 
tral accounting office. 

State Depository Board. This is! an ex-officio body composed of the Governor, At¬ 
torney General and State Treasurer. The duties and responsibilities of this Board 
are outlined in Article 6 of Chapter 27, Oklahoma Statutes, 1931, as amended by Chap¬ 
ter 207, Session Laws, 1933. Its specific duties are: To select qualified banks within 
the state as depositories; to designate the State Fiscal Agency ( in New' York as a state 
depository for those moneys! which, the Oklahoma banks decline to accept because of the 
requirement that the' banks put up legal securities to secure deposits and at the same 
time pay interest 1 on average daily balances; to investigate, examine, and approve the 
securities deposited by the banks to secure state deposits; and to fix a- uniform general 
rate of interest on the average daily balances of all public funds deposited in the vari¬ 
ous depository banks by sthe treasurers of all political subdivisions of the state. 

The deposits are limited to the amount of approved legal securities pledged by the 
depository banks. However, the depository banks insured by the Federal Deposit In¬ 
surance Corporation are required to secure proper collateral only for sums deposited 
in excess of deposits insured by such Corporation. 2 The banks are required to collect 
free of charge to ,tlie state all drafts, bills of exchange, and checks deposited by the 
several treasurers and other officials having the custody of public funds. The banks 
are also required to send the Treasurer a check each month for the amount of interest 
earned on deposits, and to render a quarterly report of all deposits, withdrawals and 
balances, including accrued interest belonging to the state. 

This Board has no personnel other than its ex-officio members. The detail work 
of the Board is performed by the personnel of the Treasurer’s office. 

State Bond Commissioner. The Attorney General is ex-officio 1 Bond Commissioner. 
His functions as such are those given in Article 5 of Chapter 27 of the Oklahoma Stat¬ 
utes, 1931, and Chapter 1&4 of the Session Law T s, 1933; namely: To prepare standard 
forms and prescribe the procedure to be employed by the state government and its po¬ 
litical subdivisions in the issuance of public securities and bonds-; to examine into and 
pass upon all securities to be issued; and to issue certificates declaring the validity of 
the bonds and/or notes issued. In performing these duties the Attorney General is not 
confined to the determination of whether or not the forms of procedure have been com¬ 
plied with ; but he may examine! into all the facts and conduct of the officers, as to the 
good-faith performance of their duties incident to such issue imposed upon them by law. 3 

All of the bonds and/or notes issued by the state government are registered and re¬ 
corded in the State Auditor’s office and the State Treasurer’s office. In addition, the 
State Auditor (registers and issues a certificate of registration for all funding, refund¬ 
ing, court-house, jail, and school building bonds issued by the political subdivisions of 
the state. 4 5 The Attorney General has no special personnel engaged upon this work. 
The time required for the examination and issuance of bonds is contributed by his 
regular staff. 

State Fiscal Agency. The selection of the State Fiscal Agency is made by the Gov¬ 
ernor. The law requires the chief executive to designate a national bank or trust com- J 

1H - B. No. 198, Regular Session, 1935, authorizes the Depository Board to fix a uni¬ 
form general rate semi-annually. 

2 H. B. K. O. 26, Laws, 1935. 

* Board of Education v. Short, 89 Okla. 2, 213 Pac. 857. 

4 Stat. 1931, Secs. 5937, 6735, and 7509. 

5 Stat. 1931, Art. 2, Chap. 27. 




ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 229 

pany in the City of New York, which is a member of the Federal Reserve system as the 
fiscal agency of the state. To qualify, the bank or trust) company selected may, in the 
discretion of the Governor, be required to> give a bond to the state double in amount 
of state moneys- which it may have in its custody at any one time. It is the duty of 
this agency to pay such bonds or coupons of the state, or any county, city, school dis¬ 
trict or board of education, as may be payable in the City of Now York. To finance 
such payments the State Treasurer and all local government treasurers are required to 
remit to the State Fiscal Agency, at least 15 days before the maturity of the bonds 
and coupons, a sufficient sum of money for the redemption of the bonds due and the 
coupons to be paid by the Agency, together with the commission to be paid, pot to ex¬ 
ceed one-fourth of one per cent, for the disbursement of the moneys so deposited. 

The State Fiscal Agency is paid one-fourth of one per cent on the total amount of 
state money disbursed by i,t in the redemption of matured bonds and coupons. The 
state government’s cost isi only nominal in that its outstanding bond and note indebted¬ 
ness is email. The disbursements made by the Fiscal Agency together with the amount 
of the commissions paid by the state government during the past seven fiscal years are 
tabulated below: 


Fiscal Year 

Total Principal 
and Interest 

Principal 

Interest 

Commissions 

Paid 

1930 _ _ _ _ 

$ 43,927.50 

$ 35,000.00 

$ 8,927.50 

$ 96.95 

1931 

36,057.50 

28,500.00 

7,557.50 

90.14 

1939 

6,425 00 


6,425.00 

16.07 

1933 _ _ . 

17,705.10 

10,000.00 

7,705.10 

44.27 

1934 

^ _ _ 1,350,508.75 

1,219,500.00 

131,008.75 

3,376.27 

1933 (to Jan. 28, 1935) 

_ . 255,630.00 

192,500.00 

63,130.00 

639.07 

Total 

$1,710,253.85 

$1,485,500.00 

$224,753.85 

$4,262.77 


The State Board of Public Affairs. This Board, in addition to its strictly institu¬ 
tional responsibilities, is charged with the construction, repair and maintenance of all 
buildings, used or occupied by or on behalf of the state, and 1 with making all purchases 
of all departments and institutions, with certain exceptions. The financial and busi¬ 
ness func.ions exercised by this Board over the operations of the departments and in¬ 
stitutions are performed under the authority of Article 7, Chapter 20, of the Oklahoma 
Statutes, 1931. These relate primarily to the control exercised over purchase and con¬ 
tract expenditures of the departments and establishments; to the final audit and ap¬ 
proval of all claims filed with the Board for payment of purchases or other obliga¬ 
tions incurred by it or under its authority; to the employment, subject to the approval 
of the Governor, of certified public accountants or auditing companies “to audit the 
books, records and files of all state commissions and departments”to the employment 
of a field auditor to audit the accounts and physical properties of all state penal and 
eleemosynary institutions; to the maintenance of a set of books which largely dupli¬ 
cate the appropriation accounts now maintained in the State Auditor’s office; and to 
receive, review, compile and file all departmental and institutional quarterly reports of 
accounts receivable, other than taxes, over GO days old with the Attorney General’s of¬ 
fice for collection. This latter office is charged by law 2 with the duty of instituting 
the necessary proceedings to collect all items of indebtedness reported to it by the 
Board of Public Affairs. 

The Board of Public Affairs maintains an auditing and bookkeeping! division to per¬ 
form its audit and accounting duties. The personnel and the annual salaries paid to 
those employees engaged in this part of its (work are given below, together with the 
length of state! sei*vice of the occupants of the respective positions at the dime of our 
sixrvey : 3 


*Stat. 1931, Secs. 3593, 3594. 

2 Stat. 1931, Sec. 3423. 

“The organization and personnel engaged in the purchasing work are given in Chapter 

XIX. 



















ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


2o0 


Continuous State Service 
Annual Present Position Other 

Position Salary Year Month Year Month 

Field Auditpr _$ 2,400 4 

Claim Auditor _'_ 1,800 4 

Assistant Claim Auditor_ 1,500 — 3 

Bookkeeper _ 1,800 1 

Total_$ 7,500 


The field auditor is engaged primarily in post-auditing the institutions under the 
Board. 

Under the suggested reorganization of the fiscal affairs of the state government, 
it is proposed to confine the State Auditor’s functions to that of inspecting ,and post¬ 
auditing the fiscal transactions of all departments, boards, commissions, agencies, and 
institutions of the state government. If this recommendation is approved, It follows 
then that the institutional audit work and the field audit position now authorized for 
the Board of Public Affairs should be transferred to the State Auditor’s office. It also 
follows, since it is proposed to centralize all pre-audit and bookkeeping work in the 
proposed State Comptroller’s office, that this work, and the three positions now au¬ 
thorized for the Board of Public Affairs, should be transferred to this proposed office, if 
created. 


Conclusions and Recommendations. At the time of the survey, Oklahoma had ten 
agencies, including the State Tax Commission, exercising some degree of control over 
the financial operations of the state government. Complete Information w : th regard to 
the financial condition and operations of the government could not be obtained from 
the State Auditor’s records or reports. To procure the financial and statistical data 
contained in this report, it was necessary to search; (1) The published and unpublished 
reports of the five agencies having to do directly with the maintenance of financial rec¬ 
ords; and (2) the published and unpublished reports of the State Examiner and the 
other departments and institutions of the state government. 

The accounting functions are now diffused and improperly assigned. For example, 
the State Examiner and Inspector is charged with the duty of devising and installing 
uniform accounting systems in some state departments and in all state Institutions; 
the Governor is charged with the duty of establishing uniform budget classifications, 
and the State Auditor is charged with the duty of keeping the appropriation or other 
central control accounts. Finally, the examination and approval of claims against the 
state government is the responsibility of three different state agencies: The State Au¬ 
ditor, the State Board of Affairs, and the State Examiner and Inspector. 

To effect a better coordination of the financial organization and an improved administra¬ 
tion of the financial affairs of the state, a Comptroller’s Office should be established in the 
Executive Department; this office should be headed by a State Comptroller appointed by the 
Governor without term, and directly responsible to him; and that this office be composed of 
the following divisions and sections: 

Office of State Comptroller 

Budget Division 

Division of Central Accounting and Reporting 

1. Pre-Audit Section 

2. Warrant Section 

3. Bookkeeping Section 

4. Reporting Section 




The office of State Comptroller should be generally responsible for the conduct of 
the work of all of the divisions of the Comptroller’s office, and, in addition, he should 
be the administrative head of the Budget Division. The Budget Division should be in 
immediate charge of the State Comptroller. It should take over the work of the pres¬ 
ent budget officer; and, in addition, should execute the budget after adoption by the 
legislature. The functions of this division should be: (1) To prepare the budget docu¬ 
ment and draft the legislation to make it effective; (2) to make field surveys and studies 
















ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


231 


of governmental agencies looking toward economy and greater efficiency; (3) to make 
allotments to control expenditures; (4) to authorize transfers of appropriations author¬ 
ized by law; (5) to study the accounting and other reports rendered by the central 
accounting office and!, departmental services; and (6) to aid the Governor in the eco¬ 
nomical management of state affairs. 

At the head of the Division of Central Accounting and Reporting should he an as¬ 
sistant state comptroller, whose functions would be that of a chief accountant. This 
division should take over the accounting and auditing duties now performed by the 
claim audit and bookkeeping sections of the State Board of Public Affairs; the pre¬ 
audit of claims now performed by the State Examiner and Inspector’s office; the set¬ 
tlement and audit of claimsi and bookkeeping work now performed by the Pre-Audit Di¬ 
vision, the Warrant Division, and the Bookkeeping Division of the present State Au¬ 
ditor's office. Ini addition, there should be transferred to this division the duty of pre¬ 
paring uniform budget and accounting classifications now delegated to the Governor, and 
there should also be transferred to it the work of installing modern accounting methods 
in the state departments and institutions now delegated to the State Examiner and In¬ 
spector. The positions now authorized for this work in the several offices, and the 
equipment now used by the personnel of these offices, should also be transferred to the 
State Comptroller’s office, when this office is created by the legislature. The functions 
of this division will be: (1) To settle and issue all warrants liquidating all claims pay¬ 
able by the state; (2) to verify the distribution and issue state warrants for the distri¬ 
bution of all taxes and other d ( ues collected for local governments; (3) to superintend the 
recovery of all debts due the state government; (4) to keep the Central Budget and 
Proprietary Accounts 1 of the state government; (5) to prepare and issue financial and 

accounting reports periodically, at least quarterly; (G) to prescribe all forms, sysrems, 

and procedure for administrative accounting in the several departments and establish¬ 
ments; (7) to certify to the Comptroller, for his. approval, each and every requisition by 
a duly accredited disbursing officer for an advance of funds, from the Treasury; and 

(8) to establish a pre-audit system of settling claims either for the entire state gov¬ 

ernment or for any bureau or bureaus of departments thereof, under which system 
vouchers supporting proposed payments would be submitted to the Comptroller for au¬ 
dit and payment. 

If the recommendation to create an/ office of State Comptroller' is approved, then the 
following recommendations are pertinent to the complete reorganization of the present 
financial structure of the state government: 

The Budget Office should he abolished. 

The present budget lazv should be repealed and a new budget law should be enacted similar 
to that outlined later in this chapter. 

A Budget Division should be created in the proposed Comptroller’s Office, haznng the 
duties and responsibilities outlined in recommendations later made. 

The State Treasurer shoidd eventually be appointed by the Governor. 

All laws repairing the issuance of warrants by the State Auditor shoidd be amended to 
substitute the title “State Comptroller” for ‘‘State Auditor” so that all warrants on the 
Treasurer ztrill be drawn by the State Comptroller. 

The Treasurer’s office should maintain detail income accounts to collect accounting 
and statistical data needed to report by distinct class of funds the sources of all re¬ 
ceipts credited to each fund; and his records should also collect these data by titles of 
the agency collecting and depositing moneys in the State Treasury. 

The State Comptroller should install a more up-to-date and coordinated system of 
treasury accounting in the State Treasurer’s office, so that the cash condition of each 
distitnet fund and the sources of all receipts covered into the Treasury may be readily 
ascertainable. 

Eventually the State Auditor should be elected ' by the legislature. 

^Budget accounts are those accounts maintained to control the receipts and disposition 
of all funds, appropriations, and allotments. Proprietary accounts are those accounts relat¬ 
ing to assets, liabilities, income, and expense. 





232 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


The pre-audit and accounting and reporting duties of the State Auditor, as enumerated in 
the Oklahoma Statutes and Session Lazos, should be transferred to the proposed State Comp¬ 
troller’s office. 

The positions notv listed under the Pre-Audit Division, the Warrant Division, and the 
Bookkeeping Division should be transferred to the proposed State Comptroller’s Office. 

The duties of the State Auditor should be restricted to post-auditing and examination of 
the financial operations of all state departments, boards, commissions, agencies, and institu¬ 
tions of the state government, including the proposed State Comptroller’s office, and he should 
report his findings annually to the Governor and biennially to the legislature. 

If the budget law is not; repealed as recommended, it is suggested that item (2) of 
Section 5370 of the Oklahoma Statutes, 1931, requiring the Auditor to submit biennial 
reports to the Budget Office, compiled by months, be amended to require comparative 
statements by fiscal years. 

If the recommendation to create a State Comptroller’s office is not approved! by the 
legislature, the State Auditor should be required to reform his present system of ac¬ 
counting and reporting to conform to the proposed system recommended later; and he 
should be required also to pre-audit all settlements on the basis of documentary evi¬ 
dence. such as contracts, open-market purchase orders, personnel papers, and the like. 

If a State Comptroller’s office is not created, the State Auditor should abandon his 
present practice of mailing all warrants issued by him to the approving officers for de¬ 
livery to the payees. 

Section 19 of Article VI of the Constitution should be amended by deleting those provisions 
directing the State Examiner and Inspectors (1) To audit the accounts of the State Treasurer 
semi-annually, and (2) to prescribe the kind of accounts to be maintained by the State 
Treasurer’s office. 

Eventually, this whole section should be repealed and all of the accounting functions 
should be transferred to the State Comptroller and all of the auditing duties to the State 
Auditor. 

The zvork of post-auditing tire financial records of the State Highzvay Commission and 
the State Tax Commission and the positions authorised for this zvork, and the zvork of post¬ 
auditing the financial records of all other state departments and establishments and the posi¬ 
tions authorised for this zvork, should be transferred to the State Auditor’s office. 

The prescribing and installation of uniform accounting and reporting methods in all state 
departments and establishments and the positions authorised for this zvork , and the duty of 
examining and reporting on the claims for refunds of the gross production taxes should be 
transferred to the proposed State Comptroller’s office. 

The duties of the State Examiner and Inspector, for the present, should be restricted to 
the devising of uniform accounting systems for counties and the audit and examination of the 
financial“ records and reports of all local governments; and he should retain that part of his 
regular personnel engaged in county-treasury audits and all of the special assistants engaged 
in the audit of county offices. 

The State Examiner and Inspector should organize a statistical section in his of¬ 
fice; this section should be( assigned the duty of collecting, compiling and publishing, at 
the close of each fiscal year, annual financial statistics reporting the financial condition 
and operations of all county governments. 

The fire-audit and bookkeeping zvork nnzv performed by the personnel of the State Board 
of Public Affairs, and the three positions nnzv authorised for this zvork, should be transferred 
to the proposed State Comptroller’s office. 

The post-auditing of state institutions, nozv performed by the Board, and the position of 
field auditor, nozv authorised for this zvork, should be transferred to the State Auditor’s office. 

Section 3422 of the Oklahoma Statutes, 1931, should be amended, to direct the filing of 
the quarterly reports of accounts receivable with the State Comptroller’s office. 

Section 3423 of the statutes should be amended to authorise the State Comptroller to en¬ 
force collection of all accounts receivable, other than taxes. 

FINANCIAL PROCEDURE 

The process involved in the exercise of financial control fall into three distinct 




ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


233 


classes; (1) Those haying to do with the actual work of determining moneys due the 
government through an assessment or other process, the collection of the amounts so 
found to be due, their custody, their disbursement in accordance with appropriation acts 
and other provisions of la'w, and the management of public debt; ,(2) those having to 
do with the exercise of administrative control over the agencies having the perform¬ 
ance of the foregoing duties through the determination, or settlement as it is termed, 
of claims for and against the government and the issuance of warrants therefor, the 
keeping of central control:' accounts, the preparation of the budget document and super¬ 
vision over the budget as enacted; and (3) that of an independent examination or au¬ 
dit of the accounts of all officers having the duty of determining amounts) due the gov¬ 
ernment, and the receipts, custody and disbursement of public funds. 

The first class of duties relate to the work of the State Tax Commission, and 
state collection agencies, and the State Treasurer. 

The second class of duties relate to the work of a central financial control office; 
and these functions should be allocated to the proposed State Comptroller’s office, which 
office should be under the immediate supervision of the Governor. 

The third class of duties relate to the work of auditing, which is now performed in 
part by the State Auditor and in part by the State Examiner and Inspector; but, if 
our recommendations are approved, the State Examiner and Inspector’s accounting and 
auditing duties will be restricted to local governments, and the State Auditor will be 
relieved of all ministerial pre-audit and accounting work in order that he may devote 
his full time to examining and post-auditing 5 the financial operations of all state depart¬ 
ments and institutions for the purpose of determining that all requirements by the 
legislature in respect to the assessment, collection, custody and disbursement of public 
funds have been duly complied with and that all state officers having the assessment, 
collection, custody or disbursement of public moneys can faithfully account for money* 
coming into or that should come into their possession. 

A State Budget System. Viewed broadly, a budget system embraces the operations 
of planning, determining, executing, and controlling. That is. the administration 1 of the 
financial affairs of a government involves a continuous chain of operations, the links 
of twhich are; (1) Estimates of expenditure and revenue needs; (2) revenue and ex¬ 
penditure acts; (3) accounts; (4) audit; (5) reports. 

In this chain of operations, the budget document finds its place as the instrument 
through which these several operations are correlated, compared, and brought under 
examination at one and the same time. The budget document, thus, is something more 
than a mere estimate of revenues and expenditures, as it is now in Oklahoma. It is, or 
should be, the document through which the Governor, as the authority responsible for 
the actual conduct of governmental affairs, comes before the legislature and makes a full 
report regarding the manner in which he and the department heads have administered 
affairs during the last completed fiscal ,year, in! which he exhibits the present condition 
of the State Tieasuiy, and, on the basis of such information, sets forth his program of 
woik foi the cuilent jear in progress and the |ensuing biennial period, and the manner 
in which he proposes that such work shall be financed. Briefly, an effective budget 
system embraces the following features: 

1. A budget agency directly under the Governor charged with the duties of: (a) Prepar¬ 
ing the budget document and drafting the legislation to make it effective; (b) making field 
surveys and studies of governmental agencies looking toward economy and efficiency; (c) mak¬ 
ing allotments to control expenditures; (d) approving transfers of appropriations authorized 
by law; (e) studying the accounting and other reports rendered by the bookkeeping and report¬ 
ing division of the central accounting office and departmental services; and (f) aiding the 
Governor in the economical management of state affairs. 

2. An effective central accounting and auditing system to control the financial operations 
of the state government and to prevent the diversion of appropriations for unauthorized pur¬ 
poses. 

3. An effective central disbursing system. 

4. A comprehensive budget document prepared for submission to the legislature for its 
revision and adoption. This document should consist of three parts : First, the Governor’s 
budget message in which he sets forth his program for meeting all expenditure needs of 


2B4 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


the government for each of the years of the biennium to which the budget relates and certain 
summary financial statements; second, his recommendations for appropriations to meet the 
expenditure needs of the government from each general class of funds, classified by depart¬ 
ments and establishments, and indicating for each the appropriations recommended for: (a) 
Oost of administration, operation, and maintenance of such departments and establishments 
and (b) appropriations recommended for land, public improvements, and other capital out¬ 
lays ; and third, a draft or drafts of appropriation bills and revenue and borrowing measures . 
suggested for enactment in order to finance the appropriations recommended. 

5. Mandatory submission by the departments and institutions of estimates of receipts 
and estimates of appropriations to the budget agency on or before a given date preceding each 
regular session of the legislature. 

6. Prohibition of estimates or requests for appropriations being made directly to the 
legislature. 

7. Requirement that the budget agency supply the legislative committees with such aid 
and information as they may request. 

8. Execution of the budget by the Governor after enactment; that is, putting into 
effect the provisions of the revenue and appropriation acts. This feature should provide that 
appropriations made by the legislature shall not be available to the spending services until 
allotted by the Governor. 

Present Budget Law. The existing budget law includes a number of the above pro¬ 
visions. It was enacted by) the Seventh Legislature and was approved March 18, 1919. 1 
It was amended in 1923 2 and, among other things, authorized the Governor to appoint 
a budget officer by and jwith the advice and consent of the Senate. The present law 
is embodied in the Oklahoma Statutes 1931 as Sections 5366 to 5378 inclusive. Briefly 
this law created a budget office and provided:. , 

1. That the Governor shall prepare a uniform budget classification. 

2. That all departments and institutions shall, on the first day of July biennially in 
even-numbered years, submit to the Governor, on official estimate blanks furnished by him, 
an estimate in itemized form showing the amount needed for each year of the ensuing biennial 
period beginning with the first day of July thereafter. 

3. That the State Auditor shall, on or before the first day of December biennially in 
even-numbered years, prepare and submit estimates of the financial needs of the legislative 
and judicial branches of the state government. These estimates are not subject to revision 
by the Governor. 

4. That the estimate blanks shall be uniform and shall clearly designate the kind of 
information to be supplied by the departments and establishments of the state government. 

5. That the State Auditor shall furnish the budget office, on or before the first day 
of November biennially in even-numbered years, the following statements, classified and 
itemized in strict accordance with the budget classifications adopted by the Governor : 

(a) A statement giving the status of all appropriations at the end of the last pre¬ 
ceding appropriation (fiscal) year, classified by organization units and titles of appropria¬ 
tions. 

(b) A statement “showing the monthly expenditures and revenues from each appro¬ 
priation account, and the total monthly expenditures and revenues from all the appropria¬ 
tion accounts, including special and all other appropriations, in the twelve months of the 
last preceding appropriation year.” 

(c) A comparative statement of “the annual expenditures in each appropriation 
account, and the revenues from all sources, including expenditures and revenues from 
special and all other appropriations, for each year of the last two appropriation years, 
with a separate column showing the increase and decrease for each item.” 

(d) “An itemized and complete -financial balance sheet for the state at the close 
of the last preceding fiscal year ending June 30” ; and, finally, 

(e) Such other statements as the Governor shall request. 

6. That the Governor or his assistants shall survey the operations of all state depart¬ 
ments and establishments on or before the first day of December biennially in even-numbered 
years in order that “he shall be in possession of working knowledge upon which to base his 
recommendations to the legislature.” 


'Laws, 1919, Ohap. 142. 
’Laws, 1923, Chap. 48. 




ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


235 


7. That upon request the departments and establishments of the state government shall 
furnish the Governor with any information desired by him in relation to their respective 
affairs or activities. 

8. That the Governor shall hold public hearings on all the estimates to be included in 
the budget, which hearings shall be held during the month of November biennially in the 
even-numbered years. 

9. That the Governor shall require the attendance at these hearings of the heads or 
responsible representatives of all state departments and establishments receiving or asking 
financial aid of the state government. 

10. That the budget document shall be prepared by the budget officer under the super¬ 
vision and direction of the Governor. 

11. That the departmental and institutional estimates of the budget document shall 
be classified by function, character, and object, and that the document shall contain estimates 
and revenues and borrowings for each year of the ensuing biennial period. 

12. That within five days after the beginning of each regular session of the legislature, 
the Governor shall submit to the presiding officer of each House printed copies of the budget 
document and tentative appropriation bills. 

13. That the Governor shall accompany the budget with : 

(a) A statement of the revenues and expenditures for each of the two appropriation 

years next preceding, classified and itemized in accordance with the official budget classi¬ 

fications adopted by the Governor. 

(b) A statement of current assets, liabilities, reserves, and surplus or deficit of the 
state. 

(c) A statement of the debts and funds of the state. 

(d) A statement showing the governor’s itemized estimates of the condition of the 

State Treasury as of the beginning and end of each of 'the next two appropriation years. 

(e) An itemized and complete financial balance sheet for the state at the close of the 
last preceding fiscal year ending June 30. 

(f) A general survey of the state’s financial and natural resources, with a review of 
the general accounts, industrial and commercial condition of the state. 

In taking action upon the budget recommendations of the Governor, the law provides : 

1. That the appropriation committees of each House “shall sit jointly in open sessions 
while considering the budget, and shall begin such joint meetings within five days after the 
budget has been submitted * * *’ n 

2. That the joint committee may require the attendance at their hearings of all heads 
or responsible representatives of the departments, institutions and other state agencies. 

3. That the hearings shall be open to “all persons interested in the estimates under con¬ 
sideration.” 

4. That the Governor, or his representative, and the Governor-elect has the right to sit 
at the public hearings “and be heard on all matters coming before the joint committee.” 

5. That all bills introduced in either House carrying appropriations shall be itemized 
in accordance with the classifications used in the budget. 

6. Finally, the budget law provides that the legislature may increase or decrease items 
in the budget bill “as it may deem to be in the interests of greater economy and efficiency in 
the public service, but neither House shall consider further or special appropriations, except 
in the case of emergency, * * * until the budget bill shall have been finally acted upon bp 
both houses .” l 2 

Constitutional Provisions for Money Bills. The following provisions are incorpor¬ 
ated in the Constitution with regard to appropriations: 

1. No moneys shall ever be paid out of the State Treasury, nor any of its funds, nor any 
of the funds under its management, except in pursuance of an appropriation by law. 3 

2. No money shall be paid from an appropriation unless payment is made within two 
and one-half years after passage of the appropriation. 3 

3. Every law making an appropriation, or continuing or reviving an appropriation, shall 
distinctly specify the sum appropriated and the object to which it is to be applied. 3 

*Stat. 1931, Sec. 5376. 

2 Stat. 1931, Sec. 5377. 

3 Const., Art. V, Sec. 55. 



236 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


4. The general appropriation shall contain nothing but appropriations for the expenses 
of the executive, legislative, and judicial departments, and for the interest on the public debt. 1 

5. No provision can be made in the general appropriation bill for increasing the salary 
of any state officer or employee, or for the payment of salary to the incumbent of any new 
position, until a law has been passed providing for the change in salary, or for the crteation of 
the position and of fixing the salary therefor. 1 

6. Clerical and all other positions created by law may be abolished or changed only by 
amending or repealing the law creating them, or by law enacted for that purpose. 1 

7. No provision can be made in the general appropriation bill for increasing or diminish¬ 
ing the salaries fixed in an act of the legislature creating an office or a position. 2 

8. All appropriations other than those contained in the general appropriation bill must 
be made by separate bills, each embracing but one subject, 1 which must be described in its title. 3 

9. All appropriation bills must be submitted to the Governor, who may veto the bills 
in toto or disapprove any particular item or items, 4 5 “but in order to veto any distinct item 
of an appropriation bill the Governor is required to disapprove the objectionable item in toto.” 6 * 
Such a veto, total or partial, may be overcome by a two-thirds vote of the legislature. 4 

10. Subject to the special restrictions and limitations imposed by the Constitution, the 
legislature has the right to make appropriations at its own discretion, under the provision 
that “the authority of the legislature shall extend to all rightful subjects of legislation.” 8 

The provisions of the Constitution relating to the financing of budget appropriations 
are: i 1 

1. That the legislature must provide by law for an annual tax sufficient, with other re¬ 
sources, to finance the ordinary expenses of the state government for the ensuing fiscal year. 1 

2. That whenever the expenses of any fiscal year shall exceed the income, the legislature 
may provide for levying a tax for the ensuing fiscal year, which tax with other resources shall 
be sufficient to pay the deficiency, as well as the estimated ordinary expenses of the govern¬ 
ment for the ensuing fiscal year. 8 

3. That the legislature shall levy an annual tax sufficient to pay interest and principal 
of the state’s debt, if any, within 25 years from the final passage of the law creating the debt. 9 

4. That the legislature “shall have power to provide for the levy and collection of license, 
franchise, gross revenue, excise income, collateral and direct inheritance, legacy, and succession 
taxes; also graduated income taxes, graduated collateral and direct inheritance taxes, graduated 
legacy and succession taxes ; also stamp, registration, production or other specific taxes.” 10 

5. That debts may be contracted by the state to meet casual deficits or failure in revenues, 
or expenses not provided for, “but such debts direct and contingent, singly or in the aggregate, 
shall not at any time exceed four hundred thousand dollars * * 

The Constitution also contains a provision with reference to reporting that is 
similar to Section 5371. of the Oklahoma Statutes, 1931. It is Section 33 of Article VI. 
This section requires all oflicers and commissioners of the state to make a semi-annual 
report to the Governor, and provides further that: 

The Governor may, at any time, require information in writing, under oath, from all 
officers and commissioners of the State, and all officers of State Institutions, penal, eleemosy¬ 
nary, educational, and industrial on any subject relating to their respective offices and institu¬ 
tions ; which information, when so required ^hall be furnished by such officers and managers, 
and any officer or manager who, at any time, shall make a false report, shall be punished as 
by law provided. 

Other constitutional provisions relating to budget operations restrict the activities 
of the legislature. The legislature is forbidden to: 

’Const., Art. Y, Sec. 56. 

2 Teele v. Carter, State Auditor, et al, Okla. Appellate Court Reporter, December 1934, 
P. 614. 

3 Const., Art. Y, Sec. 57. 

4 Const„ Art. VI, Sec. 12. 

5 Feebly v. Childers, 95 Okla. 40, 217 Pac. 1049. 

'Const., Art. V, Sec. 36. 

’Const., Art. X, Sec. 2. 

8 Const., Art. X, Sec. 3. 

"Const, Art. X, Sec. 4. 

’"Const., Art. X, Sec. 12 

’’Const., Art. X, Sec. 23. 



ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


237 


1. Retire any officer on pay or part pay, or make any grant to a retiring officer. 1 

2. Appropriate the public money for the establishment or maintenance of a Bureau of 
Immigration. 2 

3. Increase the number or emolument of its employees, or the employees of either House, 
except by general law, which shall not take effect during the term at which such increase was 
made. 3 

4. Authorize the state to make a donation to, or become an owner or stockholder in any 
company, association or corporation. 4 

5. Appropriate money borrowed by the state for a purpose other than that specified in 
the act authorizing the loan. 5 

6. Appropriate revenue from state taxes for a purpose other than that specified in the 
act levying the tax.® 

7. Increase the salary or emoluments of any public official during his term of office, 
unless by operation of law enacted prior to such election or appointment. 1 * 

Statutory Provisions Governing Budget Operations. in addition to the budget law 
itself, there are two other statutes which form part of the budget control established 
by law. These relate to: (1) Deficiencies in appropriations, and (2) to the restrictions 
put upon the State Auditor in the matter 1 of issuing pay warrants. 

The anti-deficiency law of 1931 8 9 makes it unlawful to overdraw an appropriation, 
thus creating deficiencies, except in emergencies, and then only after receiving the writ¬ 
ten consent of the Governor and an allotment from the Governor’s Deficiency Fund. 
The appropriations to this fund 'were $75,000 for each of the two years of the current 
biennial period. Any violation of this law makes the officer, agent or employee found 
guilty of such violation, subject to imprisonment of from 30 days to six months, to re¬ 
moval from office, to a fine of not less than $500 and not more than $1,000, and in¬ 
eligible ito hold any office under the laws of the State of Oklahoma for a period of two 
years after conviction. 

The State Auditor’s limitation's with reference to the issuance or drawing of war¬ 
rants. is contained in Section 3568 of the Oklahoma Statutes, 1931. This section pro¬ 
vides that it is unlawful for .the State Auditor to issue his warrant on the Public 
Building Fund, Section 13 Funds, New College Funds, Game Protection Fund, General 
Revenue Fund or any other state fund or fund under the management of the state, ex¬ 
cept in pursuance of an appropriation act. And further, that no warrant shall issue 
out of any of the above funds after two and one-half years from /the) date of the pas¬ 
sage! of an appropriation act. [ 

Present Budget Document. The budget report now submitted to the legislature 
is little more than a pamphlet of summary estimates of those funds no(w required by 
law to be appropriated biennially by the legislature. In general, it conforms to the 
legal requirements of the Budget Act with the exception of the financial statements 
supplied by the State Auditor under Section 3 of Chapter 142, Session Laws, 1919.* 
It does not, however, conform in content and method of presentation to the generally 
accepted proforma budget report. Neither does, it supply all the information re¬ 
quired by the legislature to determine the financial status of any given fund or groups 
of funds. This is due, in part, to the fact that the central accounting system now 
in operation is faulty in that it does not produce the kind of financial data needed to 
report the financial condition and operations of the state government. 

Appraisal of Present Budget System. The budget law as a whole indicates that 
its framers intended to centralize authority in the Governor for the presentation of 


’Const., Art. V, Sec. 47. 

"Const., Art. V, Sec. 48. 

"Const., Art V, Sec. 49. 

4 Const., Art. X, Sec. 15. 

'Const., Art. X. Sec. 16. 

"Const., Art. X. Sec. 19. 

’Const., Art. XXIII Sec. 10. 

s Stnt 1931. See*. 3529. 3530. 

9 Stat. 1931. Sec. 5370. 



238 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


a comprehensive work program to the legislature at the beginning of each regular 
session. In some respects, the law provides an opportunity for the preparation of a 
real budget document and the operation of an effective budget system. It requires the 
Governor to establish uniform budget classifications; it requires the departments and 
institutions to submit estimates of their requirements in accordance with these class¬ 
ifications it requires the budget officer to make field surveys and studies of govern¬ 
mental agencies looking toward economy and efficiency; it requires the Governor- to 
hold public hearings; and it requires the' Governor to submit the budget document and 
tentative appropriation bills to both Houses of the legislature at the beginning of 
each regular session. In addition, it requires the State Auditor to submit estimates 
of revenue and certain financial statements to the Governor for incorporation in the 
budget document, and inferentially, it requires him to establish an effective central 
accounting system to record, control and report currently the financial condition and 
operations of the state government. Moreover, the law provides: (1) That the legis¬ 
lature, in taking action upon the budget recommendations of the Governor, shall sit 
jointly in open sessions .while considering the budget; and (2) that neither house shall 
consider any supplemental or special appropriation bills, except in case of emergency, 
until the appropriations recommended by the Governor in: the budget shall have been 
finally acted upon by both Houses. 

Budget Law. The budget law provisions heretofore outlined, if effectively admin¬ 
istered, would contribute largely to better financial management; but. because of the 
constitutional provisions hereinafter discussed, and because the budget law is not 
sufficiently embracing in its scope in other respects, the law is defective in accom¬ 
plishing its purpose. Its primary defects are; 

First, it requires the Governor to submit the budget document and tentative ap¬ 
propriation bills to the fund-raising and fund-granting body within five days after the 
beginning of each regular session of the legislature. The new Governor does not take 
office until after submission of the budget. This means that he, in addition to serving 
about five and one-half months of his term under appropriations made by the preceding 
legislature, must also administer appropriations recommended by his predecessor for 
the first two full fiscal years of hisi administration; unless, as a matter of courtesy, the 
outgoing Governor agrees to the appointment of an unofficial budget committee by the 
incoming Governor to review the estimates submitted, hold hearings, and prepare the 
budget for submission to the legislature by the outgoing Governor as his recommenda¬ 
tions or proposals for the ensuing biennial period. Otherwise, the budget law now 
places each Governor in the position of operating under the 7 ’plans of his predecessor 
for two and one-half years of his term. This can be remedied by legislation. Alabama 
solved this problem: (1) By requiring all state departments and establishments to 
submit their estimates of income and expenditures to the State Comptroller on or 
before October 1, next prior to each regular session; (2) by requiring the preparation 
of a tentative budget by the State Comptroller on or before November 1 next succeed¬ 
ing, and of transmitting this budget to the Governor; (3) by requiring the Governor 
to hold public hearings thereon not later than the ensuing month of December; (4) by 
requiring the Governor to invite the Governor-elect, the State Comptroller, the Chair¬ 
man of the Appropriations Committee of the House and the Chairman of the Finance 
and Tax Committee of the Senate of the preceding legislature, to be present at such 
hearings and to participate in the hearings through the asking of questions or the 
expression of opinion in regard to the items in the tentative budget; (5) by requiring 
the new Governor, following his inauguration, to proceed ;with the formulation of his 
first budget and directing that he shall give such weight to the estimates of Income, 
as prepared by the State Comptroller, and the estimates of expenditure requirements 
as submitted by the departments and establishments, and to the testimony elicited at 
the hearings thereon as he deems proper; and (6) that the Governor, following his 
inauguration, shall transmit the budget document and tentative appropriation bills to 
the legislature not later than February 15 of the year of each regular legislative 
session. The states of New Hampshire and Iowa have overcome similar situations by 
enactment of like provisions in their budget and accounting laws. 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


239 


Second, it does not require the Governor to include a budget message in the budget 
document. 

Such message should be required and should set forth: 

The Governor’s program for meeting all the expenditure needs of the government for 
each of the years of the biennium to which the budget relates, indicating the classes of funds, 
general or special, from which such appropriations are to be made and the means through 

which such expenditures shall be financed. 

Financing statements giving in summary forms: (1) The condition of the Treasury at 
the end of the last completed fiscal year, the estimated condition of the Treasury at the end 
of the year in progress, and the estimated condition of the Treasury at the end of each of 
the two years to which the budget relates if his budget proposals are adopted by the legisla¬ 
ture; (2) statements showing the bonded indebtedness , of the government, debt authorised and 
unissued, debt redemption and interest requirements and the condition of the sinking funds; 
(3) a summary of the appropriations recommended for each of the years of the biennium 
of which the budget relates for each department and establishment and for the government 
as a whole, in comparison with the actual expenditures of the last completed fiscal year and 
the estimated expenditures for the year in progress; (4) a summary of the revenue, classi¬ 
fied according to sources, estimated to be received by the government during each of ' the two 
years of the biennium to which the budget relates, in comparison zvith the actual revenue re¬ 
ceived by the government during the last completed fiscal year and the estimated income dur¬ 
ing the year in progress, and (5) such other financial statements, data and comments as in 
his opinion are necessary or desirable, to make known in all practicable detail the financial 
condition and operations of the government and the effect that the budget, as proposed by 
him, will have on such condition ahd operations. 

Third, the present law does not require the Governor to make recommendations 
to the legislature in respect to the manner in which the budget i'S to be financed other 
than the inclusion of an estimate of revenue available to finance his appropriation 
proposals. 

In the case of a deficit, the law should require the Governor to supply the legislature 
zvith his recommendations as to how the deficit shall be met, whether by the imposition of 
new taxes, increased rates on existing taxes, or otherwise; and if the aggregate of the esti¬ 
mated revenues, plus estimated available balances in the 'Treasury is greater than his rec¬ 
ommended appropriations for the ensuing biennial period, he should be required to make 
recommendations with reference to the application of such surplus to the reduction of debt 
or otherwise, to the reduction of taxation, or each other action as in his opinion is in the 
interest of the public welfare. 

Fourth, the law does not prohibit the heads of departments and establishments 
from advocating increases in the appropriations recommended by the Governor in his 
biennial budget. These advocates are not restricted to the departments headed by! 
elected officials who feel little, if any, responsibility to the Governor in the matter 
of financial planning. 

The Oklahoma budget lazv should contain a provision similar to Section 22 of the Iozva 
Budget and Accounting Act / prohibiting the heads of departments and establishments from 
either advocating an increase of an item or of submitting any estimate to any committee of 
the legislature, unless at the request of either House of the legislature, and then only through 
the Governor and his budget officer, the State Comptroller. 

Fifth, the law does not require the budgeting of all state funds. The only funds 
budgeted and appropriated biennially by the legislature are those moneys now covered 
into the Treasury to the credit of the unrestricted General Fund, certain educational 
funds, the Public Building Fund, and certain special funds. 

While all earmarked receipts now funded to special funds need not be reappropriated each 
biennial period, there are considerable sums of money now disbursed from the so-called Re¬ 
volving Funds and the State Depository Accounts which ought to be covered into the General 
Fund and special funds, be budgeted and appropriated biennially, and be expended only by the 


’Acts 45 G. A., Chap. 4. 



240 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


issuance of state warrants. These transactions and the operations of the so-called cash 
( special) funds should be reported in and be made part of the budget document. 

This is essential if the legislature is to be kept informed of the hnancial con¬ 
dition of these funds and the extent of their operations. This, subject isl discussed more 
in detail hereafter, under the caption “Accounting and Reporting.” 

Sixth, the law does not give the Governor authority to execute the budget after 
approval by the legislature. The budget law should be amended to delegate authority 
to the Governor to execute the budget after enactment of the revenue and appropria¬ 
tion bills. The Fourteenth Legislature recognized the necessity for this in the passage 
of the appropriation measures for the biennial period ending June 30, 1935. In these 
acts the legislature provided that the Governor should make quarterly allotments and 
that the State Auditor should “not issue warrants in excess of the approved estimates, 
neither shall the Board of Affairs, the Board of Agriculture, or other governing boards 
make contracts in excess of such estimates. . . This provision, however, was found 
to be unconstitutional by the then Attorney General on the grounds that an appropria¬ 
tion bill can not include general legislation. The legislature should have amended 
the budget law. 

To remedy this situation it is suggested that the budget law be amended and that the 
amendment provide : (1) That no appropriation shall be available for expenditure until al¬ 
lotted by the Governor; (2) that all appropriations are to be maximum, conditioned and pro¬ 
portionate appropriations, the purpose being to make the appropriations available in full in 
the amounts named, but only in the event that the estimated budget resources of each fiscal 
year of the biennium for which such appropriations are made, are sufficient to finance all of 
the appropriations in full; and (3) that the Governor shall restrict allotments to prevent an 
overdraft or deficit in any fund in any fiscal year for which appropriations are made. 

Seventh, the law provides that the appropriations committees of each House shall 
sit jointly in open sessions while considering the budget and that the Governor, or his 
representative, and the Governor-elect has the right to sit at the public hearings “and 
be heard on all matters coming before the joint committee.” The records do not in¬ 
dicate that such joint hearings have been held. Governor Trapp, in his message of 
January 6, 1925, commented on this subject, and said: 

Io order to secure a better harmony of action between the two Houses, that we may save 
time and obtain as high a degree of efficiency as possible, I most respectfully and urgently 
x-equest that your honorable bodies appoint a Joint Committee on Appropriations and that 
such committee hold joint meetings as the budget law requires. That will enable the Budget 
Officer to be in attendance at all meetings and the committee will have the advantage of the 
knowledge he has gained of the various institutions and departments in his work of the past 
six months. 

The two Houses can then work harmoniously toward a fixed total appropriation, bearing 
in mind the resources of the State as compared with the actual demands we will be required 
to meet. This work can be completed in this manner in half the time it has previously re¬ 
quired, and we can work much more intelligently than has heretofore been possible. 

The Budget Officer and the members of the State Board of Public Affaii-s, and the heads 
and executive officers of the several departments and institutions will be placed at the dis¬ 
posal of this Joint Committee throughout its sessions upon the institutional and departmental 
bills 

The inclusion of this provision in the budget law was for the purpose of facilitat¬ 
ing the action of the legislature upon the appropriation recommendations of the Gov¬ 
ernor. It is a wise provision and if followed it ought to aid materially the two com¬ 
mittees in arriving at the total appropriations to be made for the support of the gov¬ 
ernment for the ensuing biennial period. 

Finally, the budget law should provide for enforcement of the allotment pro¬ 
visions. 

Therefore, it is suggested that this lazv be further amended to provide that in case of 

'Similar provisions are embodied in the appropriation acts for the biennium 1935-37. 
In view of the former Attorney General’s opinion, there is a question as to whether this pro¬ 
vision in an appropriation act is enforceable. 



ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


241 


failure of any department or establishment to submit quarterly estimates within the time 
specified / the Governor shall cause to be prepared such estimates for such department and 
establishment as in his opinion are reasonable and proper. 

Constitution. The Constitution includes many provisions which ought to be em¬ 
bodied only in statutory law. Some of the financial provisions hinder the economical 
administration of governmental operations. The Constitution, for example, now pre¬ 
vents the Governor from proposing changes in the salaries and/or the abolishment of 
unnecessary positions in his budget document and proposed appropriation bills. These 
same provisions also make it impossible for the legislature to make cnanges in ex¬ 
isting salary statutes in appropriation measures without first enacting or amending 
the particular law or laws creating the positions! and of fixing the salaries of the posi¬ 
tions created. 

That part of Section 55 of Article V, which makes appropriations available for tzvo and 
one-half years after their passage, should be repealed or amended. 

This means that an appropriation for the last year of a biennial period is avail¬ 
able for approximately six months after the close of the fiscal year, and that an ap¬ 
propriation for the first year of the biennium is available for two and one-half years 
or less after the close of the fiscal year, depending upon the time of passage of the act. 
This is entirely too long a period for an appropriation to remain available. It has re¬ 
sulted in Oklahoma, like in other states which do not have an up-to-date system of 
budget accounting, in the continual charging of the first year’s appropriation with 
amounts which ought to be charged to the second year of the biennial period. The 
charging of a prior year’s appropriation at the present time is largely possible because 
of the incomplete accounting control system in operation in the State Auditor's office. 
This could be remedied by the Auditor requiring sworn statements of all outstanding 
claims as of June 3d of each fiscal year, and of not allowing any claim to be charged to 
a prior year’s appropriation not listed on the statement submitted at the close of a 
given fiscal year. These statements should be accompanied by copies of all purchase 
orders outstanding and/or contracts unfilled as of the close of the fiscal year for which 
schedules are submitted. Upon receipt of each report, the Auditor should encumber 
the obligations against the appropriations affected and liquidate these obligations 
only after a careful audit of the claims submitted for payment. If this procedure 
were followed it would be possible for the central accounting office to close its books 
for each fiscal year by September 30 of each year. The appropriation accounts now re¬ 
main open for approximately two and one-half years, provided the appropriations are not 
exhausted or wholly expended prior to the lapsing date. This revision also> prevents 
the central accounting office from collecting and reporting thej castsi of a given fiscal 
year because of subsequent charges made to the appropriation accounts after the 
close of a fiscal year. 

In order that the accounts of each fiscal period may be finally closed within 90 
days after the close of each fiscal year— 

Consideration should be given to amending this section of the Constitution so as to pro¬ 
hibit the payment of any claim rendered after the close of a fiscal year, unless the obligation 
has been reported to and recorded on the books of the central accounting office as an en¬ 
cumbrance. 

This procedure would not only facilitate bookkeeping but would also conserve the 
state’s cash resources. 

Section 56 of Article V provides that no provision can be made in a general ap¬ 
propriation bill for increasing the salary of any state officer or employee, or for the 
payment of a salary to the incumbent of any new position, or for decreasing the 
salary of any state officer or employee until a law has been passed providing for the 
change in salary, or for the creation of the position and of fixing the salary there¬ 
for. This section further provides that clerical and all other positions created by law 
may be abolished or changed only by amending or repealing the law creating them. 


Usually 20 days before the beginning of eacn quarterly period. 



242 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


or by law enacted for that purpose. These provisions are objectionable because 
(1) they prohibit the Governor from making any recommendations in his budget es¬ 
timates and general appropriation bill for adjusting the salaries of state officers and 
employees in the light of changing conditions and (2) they prevent the Governor from 
omitting from his budget or from the general appropriation bill the salaries of em¬ 
ployees for positions which he believes should be abolished. This section defeated th^j 
purpose of the Fourteenth Legislature in reducing the salaries of statutory employees 
in the appropriation acts for the fiscal years 1934 and 1935. The Supreme Court held 
that such reductions were unconstitutional, because no provision can now be made 
in the general appropriation bill for increasing or diminishing the salaries fixed in 
an act of the legislature creating an office or a position. 

In viczv of what has been said, that part of Section 56 of Article V, which prohibits 
the legislature from adjusting a salary or abolishing a position zvhich has been created in 
a special law, should be repealed so as to permit the legislature to use its discretion in de¬ 
termining whether the salary recommendations of the Governor, contained in the budget and 
in. the tentative appropriation bills, should be approved or disapproved by the legislature. 

As a general principle, all salaries, other than those of the heads of departments 
and establishments, should be fixed not in permanent law but in the budget and ap¬ 
propriation acts, biennially. 

Section 2 of Article X of the Constitution directs the legislature to provide by 
law for an annual tax sufficient, with other resources, to finance the ordinary expenses 
of the state government for any given fiscal year for which appropriations are made. 

At the time of adoption of this provision the Constitution provided for the levy and as¬ 
sessment of general property taxes, but since this provision was repealed in 1933 this section 
should be amended to direct the legislature to provide other taxes than property taxes sufficient 
to finance the budget. This comment is also applicable to Sections 3 and 4 of Article X. 

Section 23 of Article X provides that the state may contract debts to meet casual 
deficits or failure in revenue, or expenses not provided for in. revenues, but limits this 
debt at any. one time to $400,000. 

This provision should be amended to allow the State Depository Board to arrange for 
temporary loans to an amount of possibly one million five hundred thousand dollars in order 
that-he may finance casual deficits and appropriations made by the legislature in anticipation 
of the collection of taxes levied to finance the budget. • ■ ' 

The state government today is expending many thousands of dollars in interest 
because of this section and because of the absence of a provision in the Constitution 
permitting the Governor to arrange for the temporary financing of governmental op¬ 
erations pending the collection of taxes. The only way the Treasury, today, can tem¬ 
porarily finance its cash needs, in excess of $400,000, is by the issuance of non-payable 
warrants which warrants bear interest at the rate of G per cent per annum. This 
rate, particularly today, is exorbitant and wholly unnecessary, as there is little reason 
for Oklahoma, with its large resources and its present financial condition, to borrow 
money temporarily at a rate in excess of 1 or 2 per cent and surely not more than 
31 per cent per annum. To accomplish this it will be necessary to amend this section 
of the Constitution. 

The defects of the budget law and the constitutional restrictions now upon the 
administration of the finances of the state government on the part of the Governor 
and of the legislature is greatly increasing the tax burden of the citizens of Okla¬ 
homa ; and it is our opinion that the premium now paid is. too great for the results ac¬ 
complished. The framers of the Constitution no doubt had in mind that the Gov¬ 
ernor and the legislature should have little administrative and legislative discretion 
in the financial management of the state government. Otherwise, there is little rea¬ 
son for the inclusion of much of the statutory law now found in the Constitution. 
Conditions have changed since its adoption and many of its provisions ought to be 
amended or repealed in order to place the operations of the state government on an 
efficient and economical basis. 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


243 


Budget Document. The budget document submitted to the legislature is incom¬ 
plete because it does not include a budget message and general statements summariz¬ 
ing the Governor’s proposals and the effect that such proposals will have on the 
financial condition of the several funds now appropriated by the legislature; it does 
not present the appropriation estimates in sufficient detail to be of real service to 
the legislature in performing its function of determining what sums shall he appro¬ 
priated for the activities of the departments and establishments of the government; 
and it does not contain any comprehensive financial and statistical statements. The 
only financial statements included in the budget document, submitted to the legislature 
for the biennium 1935-37, were: (1) A so’-called treasury balance sheet as of June 
30, 1934; (2) a summary statement of outstanding bonds and notes as of June 30, 
1934; and (3) a statement of the Treasurer’s cash account, reporting the cash 
balances of each of the funds now recorded on the books of the Treasury Depart¬ 
ment. 

The only other statements and exhibits included in the budget document to in¬ 
form the legislature of the appropriation requirements of the ensuing biennial period 
were: 

1. A summary statement of actual revenues collected in the fiscal year 1934, 
compared with the estimated revenues of the year in progress and the two years of 
the ensuing biennial period; 

2. A summary statement of recommended institutional appropriations for the 
ensuing biennial period, classified by institutions and titles of appropriations; and 

3. A summary statement of recommended departmental appropriations for the 
ensuing biennial period, classified by organization units and titles of appropriations. 

The absence of other essential statements and the detailed estimates of revenue 
and appropriations probably accounts for the little consideration given to the Gov¬ 
ernor’s budget document by the state legislature. The departments and institutions 
now submit their estimates: in detail to the budget office but these details are not pub¬ 
lished and, therefore, these data are not available to the individual members of the 
legislature nor to the appropriations committees, except upon special request. 

It has already been stated that the legislature should be supplied in the budget 
document with detail and summary information showing the relation between past 
operations and proposals for the future, between revenues and expenditures, and be¬ 
tween resources and obligations. Since the legislature has not been furnished with 
these data in the past, a proforma statement, which is usually Budget Statement No. 1, 
of a properly prepared document, Is exhibited below. This illustrates the form of 
statement suggested to report the financial condition of the several funds of the 
Treasury at the close of the last completed fiscal year, the estimated condition of the 
Treasury at the close of the current fiscal year (year in progress), and the ihvo fiscal 
years of an ensuing biennial period. This, and other supporting statements, should 
appropriately be included in a subsequent chapter on “Financial Condition and Op¬ 
erations but owing to the fact that these classes of data are not rio,w currently 
collected on any of the books of the state government, itj was not possible to obtain 
the data for their preparation. 



244 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


/ 


The summary statement follows: 

BUDGET STATEMENT NO. 1 

COMPARATIVE SUMMARY STATEMENT SHOWING THE ACTUAB CONDITION OF THE 

_FUND ON JUNE 30, 193_, AND THE ESTIMATED 

CONDITION AS OF JUNE 30, 193___, 193—, and 193-— 

Present Biennium Ensuing Biennium 

Actual Estimated Estimated 

Classification June 30, June 30, June 30, June 30, 

193— 193 193 193 

A. Resources: 

1. Unappropriated surplus at beginning of fiscal year 

2. Revenues: 

a. Unrestricted_ 

b. Restricted_ 

Total revenues __ 

3. Total resources _ 

B. Obligations: 

1. Current annual appropriations_ 

2. Permanent appropriations: _ 

a. Interest on non-payable (registered) warrants 

b. Interest on funded debt_ 

c. Restricted receipts: 

1. Non-recoverable transfers to other funds 

2. Taxes collected for counties _ 

3. Revolving fund receipts _ 

4. Depository accounts, revenue receipts_ 

Total restricted receipts _ 

3. Total obligations __ 

C. Unappropriated surplus at close of fiscal year_ 

This statement should be followed in Part I of the budget document by: (1) A 
budget balance sheet reporting the resources, obligations, and surplus of each 
of the general classes of funds, hereinafter discussed under “Funding System,” (Item 
Al) ; (2) a comparative schedule of the sources of receipts of the government sub-* 
divided as to restricted and unrestricted revenue, classified by tax revenues and non¬ 
tax revenues (Item A2) ; (3) a schedule of current annual appropriations (Item Bl), 
classified by organization units and activities; 1 and (4) separate schedules for each 
class of permanent appropriations enumerated under Item B2, classified by organiza¬ 
tion units and activities. 1 

Proposed Budget and Accounting Act In the appraisal of the present budget 
procedure it was pointed out that the present system was ineffective largely because 
of the manner in which the law has been, administered; that the Governor does not 
now have authority to execute the budget after enactment of the appropriation meas¬ 
ures ; that the appropriation procedure of the legislature makes it difficult to maintain 
a balanced budget; that the present disbursing, accounting, and reporting systems need 
modernization to afford real control over the operations of the receiving and spending 
agencies of the state government; and that the present budget law does not give the ■ 
Governor authority to allot appropriations in order to keep the expenditures within 
the resources available to finance the budget operations. 

To carry out fully the suggestions already made to reform the financial admin¬ 
istration of the state government, it will be necessary to repeal the present budget law 
and also other statutory provisions relating to financial management. The budget law 
recommended would embrace the following sections: 

A. Definitions 

1. Title of act 

2. State funds 

3. Private funds 

4. Special funds 

— _ 

5. Repayment receipts 

6. Budget 


’Usually titles of appropriation heads. 


































ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


245 


7. Unencumbered balance 

8. Code 

B. Organization 

1. Governor’s responsibility 

2. Office of State Comptroller 

a. Creation of office of State Comptroller 

b. Powers and duties, general 

c. Specific duties 

d. Other general powers 

e. Limitation of powers 

3. Budget Office abolished 

4. State Auditor relieved of accounting and pre-audit duties 

5. State Examiner and Inspector relieved of certain accounting and auditing duties 

6. State Board of Public Affairs relieved of certain accounting and auditing duties 

7. Personnel required by the State Comptroller’s office transferred from State Audi¬ 
tor’s office, Budget office, State Examiner and Inspector’s office, and State Board 

of Public Affairs 

C. Budget 

1. Fiscal year 

2. Transmission of budget to legislature 

3. Form and contents 

a. Part I. Governor’s budget message and summary financial statements 

b. Part II. Detail estimates of appropriations 

c. Part III Drafts of appropriation bills 

4. Estimates of appropriations 

5. Estimates of income 

6. Tentative budget 

7. Hearings on tentative budget 

8. Formulation of the budget 

9. Supplemental estimates 

10. Departments prohibited from requesting increases in appropriations, unless at 

the request of either house of the legislature 

D. Execution of the Budget 

1. Appropriations 

2 Allotments 

3. Repayment of receipts 

4. Lapsing of appropriations 

5. Investigatory powers 

6. Peralties 

E. Miscellaneous 

1. Amendment of laws 

2. Repealing clause 

3. Effective date 

Dis'ribution Between Budget Document and Appropriation Bills. In working out 
a budget system for determining and making provision for the financial needs of a 
government no distinction is of greater importance than that between the budget and 
the appropriation act o-r acts designed to put budgetary recommendations into effect. 

A budget is essentially an information document. As such the statements included 
in it should present the revenues, expenditures;, and appropriations of the government, 
past and prospective, in detail. It furnishes, or should furnish, information regarding 
the general character, purpose, and amount of government expenditures, and also de¬ 
tailed data as to the cost entailed in operating and maintaining particular units of or¬ 
ganization and in performing the activities conducted by the government. 

The function of an appropriation act is quite distinct from this. Its purpose is 
to authorize the issue of money from the Treasury to meet the expenditures and to 
prescribe the purposes to which such money shall be devoted. It is evident that the 
accomplishment of this second purpose raises a question which is not present In the 
formulation of a budget; namely, the extent to which it is feasible and desirable to 
prescribe in advance hotv the money appropriated shall be expended. It is both un¬ 
desirable and impracticable to attempt to carry this specification of how money shall 
be expended to anything like the detail in which expenditures and estimates are set 



246 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


forth in the budget document. To do so would tie the hands of the administrative 
officers to such an extent that it would be difficult for them to perform their duties 
economically or efficiently. 

The Oklahoma legislature does not now employ a uniform classification of appro¬ 
priations. In view of this, it Is suggested: 

The general appropriation bill for “ordinary expenses’’ should include all state agencies, 
and the annual administrative, operation, and maintenance appropriations for all agencies, 
except institutions, should be made under the following titles for each organisation unit or 
activity of a given department or independent establishment: 

--Department 


Personal Services 

Director 

Other personal services 

$ 5,600 
25,000 

Bureau of Activity 
$30,000 

Other Operating Expenses 1 

Equipment 

Motor vehicles 

Other equipment 

1,000 

4,000 

5,000 

5,000 

Fixed Charges : Allowance to needy blind 

— 

5.000 

Total for Bureau of - - . 


$ 45,000 


The annual maintenance estimates of eleemosynary and correctional institutions should 
be classified by purpose, and the appropriations for salaries and maintenance should continue 
to be made in lump sums. 

The classification of estimates of appropriations suggested for these institutions, 
for inclusion in the budget document are as follows: 

I. Administration 

1. Board of Trustees 

2. Superintendent and Business Office 

II. Professional Care and Treatment 2 

III. Instruction 

IV. Welfare 

V. Custodial Care 

1. Subsistence 

2. Housekeeping (or dormitories) 

3. Wearing apparel 

4. Sedinw room 

5. Laundry 

6. Medical and surgical care 3 

7. Recreational 

8. Other custodial care 

VI. Operation and Maintenance of Physical Plant 

(Subdivide similar to Educational Institutions, 1-6 below) 

VII. Agricultural (List) 

VIII. Manufacturing (List) 

IX. Investments in Properties 

1. Real estate (List) 

2. Institutional property (List) 

The annual maintenance estimates for educational institutions should be classified by pur- 


Hncludes supplies, subsistence and support of persons and animals, communication ser¬ 
vice, travel expenses, transportation of things, printing and binding, furnishing of heat, light 
and power, rents, repairs and alterations, and like expenses. 

2 Used by hospitals, homes for feeble-minded, soldiers’ homes and sanatoriums. 

8 Medical and surgical care should be included under the caption “Custodial Care” for all 
institutions, except hospitals, 1 homes for feeble-minded, soldiers’ homes, and sanatoriums. 



















ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


247 


pose as outlined below, and the appropriations for salaries and maintenance should continue 
to be made in lump sums. The classification of estimates of appropriations suggested for 
these institutions, for inclusion in the budget document, is that recommended by the National 
Committee on Standard Reports for Institutions of Higher Education, 1935. 

It is as follows: 

I. Educational and General 1 

1. General administration and general expense 

a. Board of regents 

b. President’s office 

c. Business office 

d. Dean of men’s office 

e. Dean of women’s office 

f. Register’s office 

g. General expense (Alumni, auditing, commencement, etc.) 

2. Instruction 

a. College of Arts and Sciences 

1. Dean’s office (Administration) 

2. Astronomy 

3. Biology 

4. Chemistry 
(Others as needed) 

b. College of Agriculture 

c. College of Engineering 
(Others as needed) 

3. Organized research 

a. Agricultural Experiment Station 

b. Engineering Experiment Station 

c. Bureau of Educational Research 
(Others as needed) 

4. Extension 

5. Libraries . . 

6. Operation and maintenance of physical plant 

a. Administration and supervision 

b. Janitorial service ...... ...■■> 

c. Repair of buildings 

d. Repair of general furniture and other equipment 

e. Care and maintenance of grounds 

f. Heat, light, power, water, gas 
(Others as needed) 

7. Organized activities relating to instructional activities 

a. Medical School hospital 

b. Home economics cafeteria 
(Others as needed) 

II. Auxiliary Enterprises and Activities 
1. Residence halls 

2 Dining halls 

3. University press 

4. Book store 

5. Intercollegiate athletics 

6. Students’ union 
(Others as needed) 

III. Other Non-educational Expenses 

1. Scholarships, fellowships, and other student aid 

2. Financial campaigns 

3. Debt service 

IV. Investment in Properties 

1. Real estate (List) 

2. Institutional property (List) 

The appropriations for land, buildings, and other permanent improvements of all state 
agencies should be made in a separate bill (or bills), classified by kind of additions or bet¬ 
terments au+bnrized for each institution or state spending agency. 

’See Financial Reports for Colleges and Universities, 1935, pp. 162-63. 



248 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


The adoption of the above suggestions will facilitate the preparation of the budget 
document, establish uniform classifications of appropriations which will be of material 
aid to the legislature in making provisions for the support of state activities, and simplify 
the accounting procedure needed to control operations. 

The point to be emphasized in drafting appropriation bills is that while it is neces¬ 
sary to prepare the budget document in detail, it is not desirable to pass appropria¬ 
tion acts in the same detail in prescribing in advance how the money appropriated 
shall be expended. 

Accordingly, to establish an effective budget and financial control system in the 
state government, it is recommended: 

The present budget lazv should be repealed and a new lazv enacted similar to that out¬ 
lined in the preceding section on the “Proposed Budget and Accounting Act.” 

The legislature should adopt the appropriation classifications suggested in the preceding 
discussion on the “Distinction Between Budget Document and Appropriation Bills”; and 
finally, 

All those recommendations in the preceding discussion should be studied with a view to 
amending : (1) The Constitution and (2) those statutory laws which now hinder the opera¬ 
tions of an effective budget and financial control system. 

ACCOUNTING AND REPORTING 

The present large expenditures of governments make imperatively necessary a 
sound system of accounting and reporting through which full and accurate information 
may be available regarding financial condition and operations. Without such informa¬ 
tion it is impossible for those directly in charge of governmental operations, or those 
responsible for the general conduct of public affairs, to exercise proper control, or for 
the legislature intelligently to formulate fiscal policies and meet its responsibility of 
determining the appropriations that shall be made to the several spending agencies, or 
for the general public, the voters and taxpayers, effectively to discharge their function 
of holding their legislative and executive representatives to strict accountability for 
the manner in which they discharge their duties. Oklahoma has recognized this essen¬ 
tial element of financial, administration in its Constitution. Section 30 of Article X 
provides that “the Legislature shall require all money collected by taxation, o>r by 
fees, fines and public charges of every kind, to be accounted for by a system of ac¬ 
counting that shall be uniform for each class of accounts, state* and local, which shall 
be prescribed and audited by authority of the State.” However, it has been unsuccess¬ 
ful in establishing a modern uniform system of accounting and reporting probably be¬ 
cause, by law, this responsibility is now divided between the Governor, who is re¬ 
sponsible for the establishment of uniform budget classifications; the State Examiner 
and Inspector, who is responsible for the formulation and installation of modern ac¬ 
counting methods in the state departments and establishments; and the State Auditor, 
who is required under present law to pre-audit all claims, itesue all pay warrants, and 
maintain a central system of bookkeeping to record and report the financial condition 
and operations of the state government. 

The failure to establish an effective system of budget and proprietary accounting 
to control the financial transactions of the government is attributable, to a large extent, 
to the laws enacted by the legislature at the suggestion of the heads of the several 
departments and institutions of the state government. They have recommended and 
the legislature has enacted laws “earmarking” and funding departmental receipts to 
special funds and many so-called revolving funds. Moneys collected and placed to the 
credit of special funds are, as a rule, covered into the Treasury and'properly accounted 
for. However, departmental receipts collected and credited to the so-called revolving 
funds are not covered into the Treasury and disbursed by warrant of the State Auditor, 
with the result that there is little supervision over these expenditures, and tfie sources 
of income of these so-called revolving funds are neither collected on the books of the 
Treasury Department nor on the books of the State Auditor’s office. Moreover, the 
legislature has authorized certain examining boards, state institutions and other state 
agencies to collect fees and other income items and to disburse these collections for 
expenses without covering these moneys into the Treasury. These are the revenues 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


249 


and non-revenues now deposited in the state depository accounts of the departments 
and institutions. 

When these depository accounts were established in 1915, the legislature had in 
mind the deposit of all moneys collected by state agents in depository banks pending 
the final determination of the disposition of the moneys collected. After this determin¬ 
ation it was no doubt the purpose of the legislature to authorize the depositing agencies 
to draw only two checks on these depository accounts: (1) To refund overpayments 
and (2) to issue a check for the balance in favor of the State Treasurer to cover the 
proceeds of the checks and drafts to the credit of some designated state fund. Subse¬ 
quently, however, the legislature was petitioned by interested departmental and in¬ 
stitutional heads to authorize them to retain within their depository accounts certain 
designated receipts, as, for example, federal aid moneys received from the national 
government, certain institutional receipts, and taxes and other collections apportionable 
to county governments. Consequently, the present depository accounts! are used as a 
convenient means of disbursing government moneys for governmental purposes with¬ 
out first being audited and recorded on the books of the State Auditor’s office — the 
present central accounting office. 

Under existing law th(e State Tax Commission collects millions of dollars of taxes, 
apportions these taxes and disburses them to the counties by its own check, independent 
of the State Auditor’s office. The Highway Commission disburses gasoline taxes col¬ 
lected for counties by the Tax Commission without any supervision on the part of the 
State Auditor’s office. The A. and M. College disburses large sums of federal aid moneys, 
matriculation receipts and private trust moneys out of the depository accounts without 
any reference to the State Auditor’s office, and, furthermore, practically every other 
department and institution of the state government receives and disburses large sums 
of state money which they deposit in and disburse from one or more designated de¬ 
pository accounts, without being pre-iaudited and recorded as governmental receipts or 
as governmental disbursements on the books of the State Auditor’s office. The sums 
withdrawn from these depository accounts of the departments and institutions in the 
fiscal year 1934, aggregated $12,144,933.99. This was over 25 per cent of the total re¬ 
ceipts of the state government in the fiscal year 1934. Of this total, $1,425,237.61 repre¬ 
sented governmental revenue and governmental costs. 

The balance of $10,719,696.38, represented non-revenue receipts, principally taxes 
collected for counties. This money is properly accounted for by the collecting depart¬ 
ments and institutions but these transactions are not recorded on the books of the 
State Treasurer nor on the books of the State Auditor’s office to report the sources of 
these receipts and the purposes of these expenditures. 

In addition to the above receipts, the legislature has authorized certain examining 
boards and the State Livestock Registry Board to retain and disburse their own re¬ 
ceipts; and it has also authorized the deputy oil inspectors of the Corporation Com¬ 
mission to collect and to retain fees collected from the owners of inspected oil. These 
deputies retain 85 per cent of the fees collected up to $150, and 25 per cent of the fees 
collected up to $200 each month, and individual inspectors’ collections only in excess 
of $200 are remitted to the State Treasurer and deposited to the credit of the General 
Fund. In the fiscal year 1934, these examining boards disbursed $27,083 and the oil 
inspectors retained fees as their compensation to the extent of $174,000. These moneys, 
like the receipts of the depository accounts, were not “covered in” the State Treasury 
and disbursed after audit by the State Auditor. 

As a general principle, all moneys collected by state agents should be deposited in 
the State Treasury and be funded to specific funds designated by the legislature, and 
such! funds should be recorded on the books of the State Treasurer’s office and tire central 
accounting office to report the sources of all receipts. In view of this, all laws which 
now permit state agencies to disburse state moneys independently of the State) Audi¬ 
tor's office should be; repealed in order to facilitate tin 5 installation and operation of an 
effectiye system of control over all financial operations of the state government. If 
this suggestion is followed, all moneys collected will be “covered in” to the Treasury, 
will be funded to designated governmental funds or private (trust) funds and be paid 


250 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


out only by the issuance of state warrants on the State Treasurer—except expenditures 
authorized out of imprest funds, which funds would, however, be reimbursed by the 
issuance of state warrants. 

Present Accounting Procedure. Mention has already been made of the fact that 
the legislature does not follow a uniform procedure in authorizing expenditures. It 
makes annual appropriations out of certain expendable funds; it “earmarks” specified 
receipts for special funds; it authorizes the departments and institutions to deposit and 
disburse their own earnings in what are known as revolving funds; it authorizes other 
specified revenues to be deposited in the State Treasury and be disbursed through the 
departmental depository accounts, and, finally, it authorizes certain examining boards 
and other agencies to collect and disburse other governmental fees without depositing 
such receipts in the State Treasury. 

The State Auditor is designated by la*w as the central accounting and warrant is¬ 
suing officer. Section 3547, of the Oklahoma Statutes, 1931, directs that “all accounts 
or claims against the state which shall be by law directed to, be paid out of the Treas¬ 
ury thereof shall be presented to the Auditor, who shall examine and adjust the same, 
and, for the sums which shall be found due from the State, shall issue warrants pay¬ 
able at the State Treasury . . .” 

This statute implies that all state money collected by state agents should be cov¬ 
ered into the State Treasury and be disbursed by warrants of the State Auditor. As 
a matter of custom, and in view of the several kinds of legislative authorizations re¬ 
ferred to in the introduction of this subject, the only state funds on which warrants 
are now drawn by the State Auditor are the claims payable out of the General Fund, 
state highway funds, educational funds, public building funds, the National Industrial 
Recovery Highway Trust Fund, and certain special (cash) funds. 

The amount of money disbursed in the fiscal year 1934 by state agencies pvithout 
the issuance of State Auditor’s warrants aggregated $13,614,500.51. Of this amount, 
$12,144,933.99, as already stated, represented payments out of the state depository ac¬ 
counts; $204,293.17' represented payments of moneys collected but not deposited in the 
State Treasury, 1 and $1,265,273.35 represented payments out of the so-called revolving 
funds, the claims of which are now audited and recorded by the revolving fund clerk 
of the State Auditor’s office. 

To determine the extent to which state funds were disbursed without the Issuance 
of state warrants it was necessary to analyze all Treasury transactions of the fiscal 
year. This analysis shows that the moneys, over which complete control is not now 
exercised by the State Auditor, were disbursed in the fiscal year 1934 for the follow- 
ing purposes; 


Function 


Governmental Costs: 

Protection to person and property: 
Commissioners of Land Office — 

Industrial Commission proper_ 

State Insurance Fund _ 

Corporation Commission _ 

Market Commission _ 

Examining Boards _ 

Total protection to 

person and property_ 


Total 

Depository 

Accounts 

Revolving 

Funds* 

Money Not 
Deposited in 
State Treasury 

2,774.63 

56,379.59 

6,153.84 

174,147.32 

1,032.20 

54,776.89 

295,264.47 

$ 2,774.63 

56,379.59 
6,153.84 


S 






174,147.32 

1,032.20 

27,693.78 

94,034.04 



27,083.11 

201,230.43 



Conservation of health and sanitation- 10,833.08 

Development and conservation of 

national resources _ 395,767.89 

Charities, hospitals and corrections _ 599,896.38 

Education _ 1,202,709.15 

Miscellaneous _ . 8,891.84 


395,767.89 

384,860.05 

541,683.79 

8,891.84 


Total Governmental Costs _ 2,513,362.81 1,425,237.61 


10,833.08 


215,036.33 _ 

657,962.62 3,062.74 


883,832.03 204,293.17 


J More was disbursed but this is the amount reported in answer to our questionnaire. 
’Audited by and recorded on State Auditor’s books. 







































ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


251 


Function 

Non-Governmental Costs: 

Taxes collected for counties_ 

Private trust funds _ 

Working capital operations 

—Prison industries _ 

Refunds _ 

Warrant purchase account_*._ 

Total Non-Governmental Costs 

Grand Total _ 





Money Not 


Depository 

Revolving 

Deposited in 

Total 

Accounts 

Funds 1 

State Treasury 

_ 10,011,928.43 
530,006.64 

381.441.32 
144,650 83 

10,011,928.43 

530,006.64 

144~6lfo~83 

33,110.48 


— 

381,441.32 

— 

33,110.48 


--- 

11,101,137.70 

10,719,696.38 

381,441.32 

_ 

-$13,614,500.51 

$12,144,933.99 

$1,265,273.35 

$204,293.17 


'The omission from the Auditor’s report of the amounts expended from the state 


depository accounts and the moneys not now deposited in the depository accounts of 


the State Treasury, clearly demonstrates that the Governor, the legislature, and the 
taxpayers of Oklahoma are not being correctly informed of the magnitude of the 
financial operations of the departments and establishments of the state government. 
This, situation should be remedied. 

The present accounting and reporting systems are described below under the fol¬ 
lowing headings: 


1. State Auditor’s office 

2. State Treasurer’s office 

3. Departmental Accounting 

4. Reporting Procedure 


State Auditor’s 1 Office. The accounting system of this office involves th£ mainte¬ 
nance of accounts to record appropriations, receipts and disbursements of Treasury Ac¬ 
count No. 1 and Treasury Account No. 4. These accounts embrace only those moneys 
covered into the Treasury and enumerated in the preceding section. The Auditor’s 
records did not at the time of our survey collect analytical accounting information for 
the departmental depository accounts and the revolving funds. Neither do they collect 
classified accounting information for the other state funds. 

The appropriation accounts pertain solely to the annual appropriations made out 
of the general fund. Section Thirteen funds, new college funds, Union Graded Common: 
School Fund, public building funds and the special (cash) funds. Appropriation ac¬ 
counts are not maintained for certain permanent recurring appropriations: as for 
example, the amount expended for interest on treasury notes, interest on non-payable 
(registered) warrants; certain debt redemption requirements and payments made to 
the State Fiscal Agency. All of these payments are authorized by permanent law, are 
made by 1 the Treasurer without the issuance of warrants, and are reported each day 
to the State Auditor, but because they are not included in the annual appropriation 
acts no appropriation accounts are carried for these transactions. Moreover, the ap¬ 
propriation accounts now maintained do not control the operations of the departments 
and establishments under legislative appropriation because these accounts are kept 
strictly on a warrant issuing basis. No attempt is made to encumber the appropria¬ 
tions with contracts, open market orders and salary requirements. The present ap¬ 
propriation accounts are recorded on loose leaf sheets by the pen and ink method, as 
are all accounting records of the State Auditor’s office. 

In addition to the above omissions, many other items are received and paid by 
the Treasurer, reported to the Auditor’s office each day on the Treasurer’s Daily Re¬ 
port, but are not recorded on the State Auditor’s books. These relate to the receipts 
and disbursements of the governmental trust funds' of the Commissioners of the Land 
Office, transfers between funds, and non-revenue receipts collected by state agencies 
for county governments. 

The records of receipts are also incomplete since they do not include all cash col¬ 
lections of the State Treasurer. The registers are bound books and loose leaf sheets, 
and while these records do not contain a record of all Treasury receipts, they do af¬ 
ford the means of establishing 1 an accounting control over the revenues of those funds 
recorded. 

‘Audited by and recorded on State Auditor’s books. 



























ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


252 


State Treasurer’s Office. The accounting procedure employed- by the State Treas¬ 
urer’s) office involves thje use of a multiplicity of forms and records that are cumber 
some and expensive and do not readily disclose the information that should be xe- 
ported currently. The system makes use of approximately 50' ledgers, journals, docu¬ 
ments and record forms of various rulings and sizes. Some are permanent bound ledg¬ 
ers and others loose leaf forms. Approximately ten of these forms are used for ac¬ 
knowledging and recording receipts by sources and funds; ten for recording disburse¬ 
ments and transfers; eleven for recording securities deposited (with and withdrawn 
from the Securities! Division, and the remainder consists of various ledger and record 
sheets used for recording bonds and notes issued and redeemed and records of deposits 
and withdrawals of revolving funds, depository accounts, county deposits, and land 
office transactions. 

The present system may be simplified by: (1) The classification of all receipts 
by sources from which received and by funds to which credited; (2) the classification 
of all funds on hand by depositories in which such funds are located; and (3) the classi¬ 
fication of disbursements by general classes of funds from which disbursed. The num¬ 
ber of books and records necessary to accomplish these ends can be materially reduced. 
For example, the number of forms used for depositing and recording receipts by sources 
and f'upds should be reduced from ten to four—a ledger of income by sources, a 

register of income by funds, a uniform remittance schedule, and a remittance (de¬ 

pository) register; the number of forms in the Securities Division may be reduced 
from eleven to ten; and the number of forms used for all other purposes, approxi¬ 
mately twenty in all, may be reduced to possibly eight—a general ledger, a register 
of checks, a register cf bank deposits, a register of bank withdrawals, a form for dis¬ 
tributing* taxes collected to state funds and counties, a bond and note record, a register 
and record of interest bearing warrants, and a uniform daily and monthly report 
form. This means that instead of some 40 forms now used, it is estimated that a 
maximum of 22 forms would produce all the information necessary to be recorded and 
reported by} the State Treasurer. As a further measure of economy and efficiency ail 
books and records should be produced by accounting machine process, thus making it 
possible to supply the central accounting office with (1) a complete transcript of all 

Treasury transactions as a by-product of registering and recording the original trans¬ 

action; and (2) to report at all times; (a) The accumulated total received from each 
source of revenue and credited to each fund and (b) the balance of cash on hand and 
in each depository. 

In establishing this system the first step necesisary is that of preparing la uniform 
classification of receipts by sources and a uniform classification of funds. The general 
classification to be followed in recording receipts by sources is indicated in Schedule 1 
of Exhibit C of Chapter’ XVIII of this report. A uniform classification of fund}* is 
discussed later in this chapter. The changes herein suggested and the recommendations 
appearing at the end of this section to effect these changes will require no- action by 
the legislature. 

Departmental Accounting. The state now imposes a uniform classification of ex¬ 
penditures upon the departments and institutions but the accounting forms required 
for the collection of the appropriation and expenditure data are not uniform. No 
classification of funds and revenues have been promulgated for the guidance of the 
collecting agencies. 

Each department maintains only those accounts which it deems necessary. The 
Department of Public Instruction, the state institutions, the State Tax Commission, 
and the Highway Commission have quite complete systems of accounting, but there is 
little uniformity in other departments. If the appropriation and allotment classifica¬ 
tions outlined previously are adopted, they will establish a uniform classif^ation for 
(1) educational institutions, (2) eleemosynary and penal institutions, and (3) the 
other departments required to keep departmental accounts. And if classifications of 
funds and revenue and non-revenue income are prepared and issued for the guidance 
of all collecting agencies, similar to Schedule 3 of Exhibit C of Chapter XVIII these 
Classifications will establish uniformity in the funding of all collections and the class¬ 
ification of all receipts. 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


253 


Reporting Procedure. Successful administration of the finances of a government is 
based upon reports which are rendered currently and promptly to the chief executive, 
the budget officer, heads of departments, bureau chiefs and project leaders to give them 
information regarding the operations for which they are held responsible. In a state 
government, and even in the larger departments, it is not possible for the executive 
head to maintain personal contact with the detail work of his subordinates. He must 
delegate details to others; and the principal means he has of keeping Informed re¬ 
garding the operations of his organization is by complete and accurate reports. Such 
reports will enable the Governor, the budget officer, and the heads of departments to 
review the operations of the government as a whole, and of each department and bureau 
periodically, and to obtain a comprehensive grasp of what is being done. 

An effective budget system presupposes an effective central accounting and report¬ 
ing system. Without it no real control can be exercised over the operations of the col¬ 
lecting and spending services of the government. Efficient and economical administra¬ 
tion requires the periodic preparation of statements to report the financial condition 
and operations of the government. This is essential if the legislature is to act intelli¬ 
gently in voting revenue and expenditure programs; if the Governor and other adminis¬ 
trative officials are properly to discharge their functions, and if the public is to be 
kept informed of the cost of government, and the means for financing such costs. 

The financial data of the government today are scattered, due to the decentraliza¬ 
tion of financial administration and to the failure of the State Auditor’s and State 
Treasurer’s office to collect classified revenue and expenditure data on their bookkeep¬ 
ing records. It is now impossible to refer to any one financial report to obtain the 
kind of data needed fob management purposes. The financial data included in the chap¬ 
ter on “Financial Condition and Operations” was compiled from printed and manu¬ 
script reports and often from the receipt documents and bookkeeping records of the 
different state agencies. These were: 

1. The biennial report of the State Auditor with regard to the receipts and ex¬ 
penditures of those funds then required to be covered into the Treasury and to be dis¬ 
bursed by state warrants; 

2. The manuscript report of the State Treasurer with, regard to the condition of 
the State Treasury andl certain trust! and special funds not reflected on the books of the 
State Auditor. 

3. The printed report of the State Tax Commission; 

4. The State Examiner and Inspector’s audit, reports of state institutions; and 

5. The annual reports of the Board of Health, the Insurance Board, the Insurance 
Commission, the Corporation Commission, the State Board of Agriculture, and sundry 
other departments and boards of the state government. 

The State Auditor’s report does not include any detail financial data relating to 
operations of the government under annual appropriations made by the legislature, nor 
does it report separately the< operations of those state funds! now included in the Audi¬ 
tor's accounting records. It does, however, include certain data with reference to the 
trust funds handled by the State Land Office, and a statement of taxes collected by 
the state and paid to counties. But these transactions are not recorded on the Audi 
tor’s financial records. The data are abstracted from the June 30 reports of the Com¬ 
missioners! of tlte Land Office and the State Tax Commission. 

The State Treasurer’s semi-annual and annual reports supply data regarding re¬ 
ceipts, apportionments and disbursements of the state government but the data are not 
presented in a form to readily report the operations of each distinct fund account now 
carried on his books. As a whole, it is a fairly good report; but it does not present 
the data in the most usable form since it does not include summary revenue data by 
sources? and funds, and it is at present necessary to recast the, data reported to ascer¬ 
tain the status of each individual fund as to: (I) The beginning balance; (2) the re¬ 
ceipts and disbursements of the period covered; and (3) the unexpended balances of 
the individual funds as of a given date. 

It may be said that the state government has never had an effective central ac- 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


254 

counting' and reporting office; and, not having such office, no governor and no legislature 
has had presented to them the kind, of financial data needed to perform their respective 
financial functions. If our recommendation to create such an office, headed by a State 
Comptroller, is adopted, and if a modern system of government accounting and report¬ 
ing is installed and operated, data will be collected currently and be reported to the 
Governor and tot the heads off depjartments periodically, at least quarterly; td the public 
annually, and to the fund-raising and fund-getting authority at each regular session of 
the legislature. 

Proposed System of Accounting and Reporting. It has been set forth above that 
the existing system of accounting and reporting does not supply the data needed by 
the legislature and the administration to exercise control over thfe financial operations 
of the state government; that about 25 per cent of the receipts are not nonv reflected 
on the books of the central accounting office; that those that are recorded are not 
properly classified as to sources of income and purposed of expenditure, and that the 
present system of fund and appropriation accounting falls far short of controlling the 
operations undertaken under: (1) Current annual appropriations, and (2) permanent 
laws establishing special funds and special accounts. To remedy this condition the 
state government must install a modern system of accrual accounting and reporting, 
if a true picture of the government’s financial condition and operations are to be pre¬ 
sented periodically. 

Classification! of Accounts. Before proceeding to the work of devising a system of 
accounting it is! first necessary to determine the kind of data needed for management 
purposes. In government, the character of data required relates to: (1) Financial con¬ 
dition; (2) financial operations; (3) funds and appropriation resources, obligations, 
and balances; and (4)i cost information. To supply these djatai it is necessary to class¬ 
ify the revenues of the government by funds, sources from which obtained and collect¬ 
ing agencies, and the expenditures must be analyzed from at least six distinct stand¬ 
points : (1) Funds; (2) appropriations; (3) organization units; (4) functions and 
activities; (5) character of expenditure; and (6) objects of expenditure, that is, things 
purchased. 

It is necessary to maintain a separate set of accounts for each general class of 
funds because each fund represents a more or less definite sum of money or other re¬ 
sources, subject to distinct and continuing regulations or limitations as to its manage¬ 
ment or use. If all receipts of the state constituted revenues for strictly governmental 
purposes and if all of this revenue were freely available without restriction for meet¬ 
ing any of the expenses of the government, there would be only a single fund,, and, the 
necessity for establishing separate funds would not exist. 

Second, a department or establishment may receive its income from a number of 
sources, each of which is available only for certain specified activities, or the total grant 
of monej 7 made to it may be in the form of definite appropriations for specific pur¬ 
poses. 

Appropriation items are the specifications made by the legislature of the purposes 
for which the amounts authorized are to be spent. Obviously, the financial records and 
reports of the government must show expenditures according to the various items of 
appropriations, so that the limitations imposed by the fund-granting body may be ob¬ 
served, and that this observance may be clearly shown to the legislature. 

In statements showing expenditures on the basis of appropriations, the expenditures 
should be reported in comparison with the amounts appropriated and allotted; that is, 
the total credits minus the total debits (represented by expenditures, transfers, anti 
lapses) and the resulting unexpended balance. It is also important to- show how much 
of such unexpended appropriations are unallotted, the amount of allotments unen¬ 
cumbered, and the amount cf encumbrances unliquidated or unpaid. 

Third, it is desirable to collect revenue and expenditure data for each, organization 
unit of government. Without such data, it is impossible definitely to locate responsi¬ 
bility for collection of revenue or for expenditures, to exercise control over actual 
operating units, to secure, efficiency and economy through comparison of relative costs 
for similar or analogous units or to prepare estimates of future needs. To secure this 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


255 


there should be available a statement of expenditures classified by organization units, 
in which tlie total expenditures are distributed according to such units. In this state¬ 
ment units of organization should be classified according to their statusi in the general 
organization of the government as a whole. By so doing information will be afforded 
regarding not only the cost of each individual unit but also the totals for a group of 
units constituting a bureau, for a' group of bureaus constituting a department, for all 
departments; combined constituting the administrative branch) of the government, and 
for each of the grand subdivisions of the government, the legislative, executive, and 
judicial branches. 

Fourth, it is equally important that expenditures be known in terms of functions 
and, activities. There are few services, which do not have to engage in a number of 
specific activities in order to perform their general functions. For example, a service, 
such as a Department of Public Instruction, in performing its general function of edu¬ 
cation, frequently engages in the conservation of child life, care of children and care 
of blind, deaf and mute, in addition to its general function of public school instruc¬ 
tion. Clearly it is desirable that the appropriating authority shall have information re¬ 
garding the expenditure entailed by the performance of each of these activities. The 
classifications recommended are those prescribed by the United States Bureau of the 
Census. An illustration of the Census classification is, supplied by Schedule 2 of Ex¬ 
hibit C of Chapter XVIII of this report. 

Fifth, information should be available regarding the character of these expendi¬ 
tures. The question is presented, in particular cases, as to how far the attempt should 
be made to differentiate expenditures from this standpoint. It should certainly go far 
enough to distinguish clearly between (1) capital outlays, (2) fixed charges, and (3) 
current expenses. 

Finally, if an adequate check is to be had upon expenditures, data should be at 
hand regarding expenditures in terms of things immediately purchased; that is, how 
much goes for personal services, how much for transportation, how much for heat, 
light, etc. 

After the accounts are classified, as outlined above, it is necessary to promulgate 
rules and regulations as to their application and use. It is then necessary to devise 
the receipt and expenditure documents and bookkeeping forms to be made use of in 
the operation of the system of accounting to be established for collecting currently the 
accounting data needed for management purposes. The system recommended for adop¬ 
tion is discussed below under the heads of, (1) Central Control Accounting and (2) 
Departmental Budget Accounting. 

Central Control Accounting. In outlining the work of the proposed State Comp¬ 
troller’s office, it ,was set forth, among other things, that the proposed Comptroller’s 
office should be charged with the duty of keeping the budget and, proprietary accounts 
of the state government and of prescribing all forms, systems, and procedure of ad¬ 
ministrative accounting in the several departments and institutions of the state govern¬ 
ment. The system of accounting and reporting recommended for adoption is outlined 
below under the following captions: 

1. Budget Accounts 

2. Proprietary Accounts 

3. Reports 

Budget Accounts. The budget accounts are the most fundamental in government 
and gather the data needed to- report the financial condition of funds, appropriations, 
and the status of allotments. Their purpose is to show the internal condition of the 
finances of the government find to control the operations of the departments under legis¬ 
lative appropriations and special funds. 

To accomplish this in Oklahoma, the following is suggested: 

1. That the lump sum appropriations for salaries and maintenance be allotted 
by “purpose,” that is, by activities or organization units as suggested in the section 
on the “State Budget System.” 

2. That a ledger account be maintained for each appropriation to record the ap¬ 
propriation, allofments, and unallotted balance. 


256 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


3. That an allotment ledger account be maintained in the central accounting office 
for each “purpose” allotment made by the Governor. 

4 . That the allotment ledger sheet be ruled to collect all transactions affecting a 
specific allotment on one sheet and that it be designed for machine bookkeeping so that 
a register of transactions may be prepared simultaneously at time of posting. The sug¬ 
gested ruling follows: 

1. Previous Balance 

2. Symbol 

3. Date 

4. Document No. 

5. Kind of Document 

6. Disbursements 

a. Object No. 

b. Stores Issues (Used only if stores are financed by a Working Capital Fund) 

c. Vouchers 

7. Encumbrances 

a. Liquidations 

b. Authorizations 

(1) Requisitions (Used only for those stores financed by a Stores Working 
Capital Fund) 

(2) Purchase Orders 

(3) Sundry (Contracts, etc.) 

8. Allotment 

9. Unencumbered Allotment 

5. That the funds of the state be classified into general classes, for example: 

A. Expendable Funds 

1. General Fund 

2. Educational Funds 

3. Highway Funds 

4. Public Building Fund 

5. Bond Funds 

(?. Special Revenue and Expense Funds 
7. Sinking Funds 

B. Working Capital Funds 

C. Endowment Funds 

D. Private Funds 

6. That but one general ledger be maintained for both fund (or budget) and 
proprietary accounts of each general class of funds, and that these accounts be the 
following: 

000 Cash 

001 Treasury Cash 

002 Cash in Depository Banks 

003 Imprest Funds of Disbursing Officers 

004 Cash in Hands of Collection Agents 

010 Notes Receivable 

Oil Secured Loans 

012 Unsecured Loans 

020 Accounts Receivable 

021 Taxes Receivable 

029 Other Accounts Receivable 

030 Due from Other Funds 

040 Investments 

050 Estimated Revenues 

060 Bonds Authorized and Unissued 

070 Stores 

071 
072 


General Supplies 
Highway Stores 



ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


257 


073 

Institutional Supplies 


080 

Deferred Debits 


090 

Fixed Property and Equipment (Net) 


091 

Miscellaneous Equipment 


092 

Permanent Improvements 


093 

Lands and Interests in Lands 


094 

Work in Progress 


100 

Expenses 


101' 

Budget of Current Year (1936) 


102 

Budget of Prior Year (1935) 


109 

Continuous Appropriations 


200 

Accounts Payable 


201 

Budget of Current Year (1936) (Warrants Payable) 


202 

Budget of Prior Year (1935) (Warrants Payable) 


203 

Continuous Appropriations (Warrants Payable) 


204 

Contract Holdbacks 


205 

Warrants for Purchase of Stores (Used only if stores are 

financed from a 


Working Capital Fund and subsequently charged to appropriation accounts 
upon issue) 

206 

Non-pay able (Registered) Warrants 


207 

Undistributed Taxes Collected for Local Government 


208 

County Treasurers’ Deposits 


210 

Notes Payable 


220 

Due to Other Funds 


230 

Fixed Liabilities 


231 

Bonds 


232 

Notes 


240 

Reserves 


241 

Accumulated Requirements of Sinking Fund 


242 

Other (Specify) 


250 

Income 


200 

Deferred Credits 


261 

Unearned Taxes Levied for State Purposes 


262 

Undistributed Tax Collections 


300 

Balance of Appropriations 


301 

Unallotted Appropriations 


302 

Unencumbered Allotments 


303 

Unliquidated Encumbrances 


309 

Appropriation Expenditures 


400 

Surplus 


401 

Current Surplus (Used only at end of each fiscal year to 
at end of each period for which statements are made) 

close books or 

402 

Unappropriated Surplus 


403 

Fixed Capital Surplus 


That 

the budget statements of resources, obligations, and balances be supplied to 


the Governor and the Budget Officer at the close of each month, and that statements 
of appropriation and allotments be supplied to the Budget Division of! the Comptroller’s 
office at the close of each] month and quarterly to the Governor for each of the general 
classes of funds, and that the data be compiled similar toi those statements hereinafter 
described under “Reports.” 

Proprietary Accounts. The proprietary accounts are those which supply Informa¬ 
tion relative to the financial condition of the government and the means by which this 
condition was reached. Siniee the existing accounting system is: incomplete, it is recom¬ 
mended thjat control accounts for each general class of funds, similar to those outlined 
above, be set up on the books of the central accounting office to collect currently* the 







258 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


financial data needed to produce a balance sheet, an operating statement and detailed 
reports similar to those hereinafter suggested under “Reports,” and as exhibited in 
the chapter on “Financial Conditions and Operations.” 

By the adoption of the general ledger accounts and allotment ledger sheet suggested, 
the data for the proprietary accounts will be collected largely as a by-produet of keep¬ 
ing the “budget” accounts. 

The debits and credits of these several control accounts are not here described 
«dnee this seems unnecessary. However, the kinds of reports that such system will 
make it possible to prepare currently, are outlined below. 

Report. The reports which ought to be prepared periodically by the Division of 
Central Accounting and Reporting, of the State Comptroller’s office, for the information 
of the Governor andt the Budget Division, are as follows: 

1. Budget Statement of Fund Resources, Obligations, and Balances 

2. Statement of Realization of Revenue 

3. Cumulative Statement of Appropriations 

4. Statement of Appropriation and Allotment Operations 

5. Consolidated General Balance Sheet 

6. Consolidated Statement of Operations 

7. Sinking Fund Balance Sheet 

8. Statement of Sinking Fund Operations 

9. Statement of Bonded Debt 

10. Miscellaneous Statements 

A general description of the purposes of these statements is given below: 

Budget Statement of Fund Resources, Obligations, and Balances. This statement 
should be prepared monthly to report the financial position of the general classes of 
funds based upon their estimated receipts and estimated expenditures. It should exhibit 
the resources of the several classes of funds classified to report (1) the budget estimates 
of revenues to be billed; (2) the amount of revenues billed and uncollected; (3) the 
amount, of available cash, that is, the amount of cash, less current liabilities; (4) the 
amount due from other fuinds; and (5) the amount of bonds authorized and unissued. 
Opposed to these resources should be reported the obligations of the government to 
carry out the directions of the legislature in the expenditure of moneys appropriated. 
The obligations should be classified to report (1) the amount of unallotted appropria¬ 
tions; (2) the amount of unencumbered or free balances of allotments; (3) the amount 
of unliquidated encumbrances, that is, the reserves set up to cover contingent obliga¬ 
tions incurred for (a) contracts, (b) requisitions for services and supplies ordered and 
not liquidated, and (c) salary commitments; and (4) the amount due to other funds. 

The balance reported for each class of funds, if a credit balance, will represent 
the estimated budget surplus available for appropriation by the legislature; but, if a 
debit balance, will set forth that the estimated resources of a given fiscal year are 
not sufficient to balance the budget authorizations. 

Statement of Realization! of Revenue. This schedule should supply current informa¬ 
tion as to whether the estimated revenues of the budget (as revised) upon which ap¬ 
propriations were made by the legislature, will be realized within a given fiscal year. 
It should be presented to the Governor and the Budget Division monthly in order that 
the expenditure programs of the departments may be revised, is necessary, to prevent 
the creation of a deficit. 1 ' j 

These data should be reported for each general class of funds by sources of rev¬ 
enues estimated in the budget, and should be tabulated to set forth; (1) The estimated 
revenues to be collected within a given fiscal year; (2) the collections to date: (3) the 
balance of estimated revenues to be collected; (4) the percentage of estimates collected 
to date of report; and (5) the percentage of time elapsed to date of report. 

Cumulative Statement of Appropriations. This statement should report cumulative 
data for the current and continuing appropriations of each general class of funds of 
the government, It should be prepared monthly for the information of the Governor and 
Budget Officer. Iu fund (or budget) accounts it corresponds to the operating state¬ 
ment of the proprietary accounts in that it reports the increasing and decreasing ele- 



ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


259 


meats of tlie appropriations of an organization unit, thus showing how the condition 
of the appropriations of given fund, reported in the budget statement c-f fund resources, 
obligations, and balances, is reached. 

Statement of Appropriation and Allotment Operations. The budget lauv should re¬ 
quire all appropriations to be allotted, and these allotments should be made by/ “pur¬ 
pose” and set up cn the books of the central accounting office. If this is done this state¬ 
ment should be prepared at the close of each month (from the books of the central ac¬ 
counting office! for the information of the Budget Division. This may be accomplished 
without extra work by posting each month’s transactions to duplicate (carbon copy) 
allotment ledger sheets. It has for its purpose to report the condition of each allotment. 

Consolidated General Balance Sheet. The purpose of this statement is to report 
the financial position of the government as of a given date,-since the governlment as a 
proprietor has the same responsibilities as a private person or corporation. These re¬ 
sponsibilities consist of the management of possessions and the payment of debt; that 
is, (1) for prompt payment of current liabilities involving the continuous provision of 
an adequate cash balance and (2) the prompt payment of matured bonded debt involv¬ 
ing the adoption of adequate means of redemption. This should not be prepared more 
often than quarterly. It should be classified on the assets side into (a) current assets, 
(b) deferred debits, and (c) capital assets, while the liabilities, reserves, and surplus 
section should be divided to report (a) current liabilities, (b) deferred credits, (c) 
current surplus, (d) capital liabilities (less sinking fund assets), and (e) capital surplus. 

Consolidated Statement of Operations. The purpose of this statement is to exhibit 
how the results reported in the balance sheet were reached. A periodical determination 
of financial condition must be followed by an examination of the means by which such 
condition is reached in any continuous activity involving the assessment and collection 
of revenue, the expenditure of money, the management of assets, and the liquidation of 
liabilities. This necessary adjunct of efficient management is afforded by the operating 
statements which can be produced from the accounting system herein recommended. This 
statement should not be prepared more frequently than quarterly. It should be classi¬ 
fied to report the income from (a) revenues and (b) non-revenues, the expenditures by 
(a) opeiiating expenses, (b) sinking fund requirements this fiscal year, and (c) capital 
outlays, and the balance should represent the excess of incomes over expenditures or 
the excess of expenditures over income. 

Sinking Fund Balance Sheets. These statements show the actual condition of each 
sinking fund at a given date and reveal the extent to which expectations in respect to 
the retirement of bonded debt through them are being met or not being met, either as 
the result of faulty sinking fund laws or of mismanagement on*the part of those re¬ 
sponsible for the administration of the sinking funds. These statements should be pre¬ 
pared not oftener than quarterly. 

Statement of Sinking Funds Operations. The purpose of these statements is to 
set forth how the condition reported in the sinking fund balance/ sheets was reached. 
They should be prepared! toi include all cash receipts and all cash disbursements as well 
as all sinking fund income accrued and expenditures incurred. They should be so stated 
that information is presented to report the net excess of each sinking fund’s income 
over expenses and requirements so that data are made available to show the extent to 
which the accumulated annual surplus is reducing the accumulated deficiency, if any. 

These statements furnish the Governor, the State Treasurer, and the State Comp¬ 
troller with information regarding the operations of each sinking fund. These state¬ 
ments should be prepared quarterly. 

Statement of Bonded Debt. This statement sets forth the facts regarding bonded 
debt of the state on the date to which the report relates, and ought to be prepared 
periodically for the information of the Governor and the Chief of the Budget Division. 

Miscellaneous Statements. The system herein recommended will produce data for 
other detail statements to support the more general statements referred to above. For 
example, statements of revenues classified by sources and agencies collecting, statements 
of expenditures classified by the several departments herein recommended for the State 



260 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


I 

of Oklahoma and the bureaus thereunder, and statements reporting the expenditures of 
these bureaus by character and objects of expenditure. 

The recommendations contemplate the production of these data on forms similar to 
those recommended by the National Association of State Auditors, Comptrollers, and 
Treasurers at their Thirteenth Annual Convention held at New Orleans and exhibited 
in part in the chapter on “Financial Conditions and Operations.” 

Departmental Budget Accounting. To standardize the budget accounting work of 
all state agencies it is recommended that the present expenditure and receipts docu¬ 
ments continue to be used but that the present appropriation bookkeeping and reporting 
forms be discontinued at the close of the ensuing fiscal year, June 30, 19-36, and that, 
there be substituted therefor the following bookkeeping forms: 

1. Departmental appropriation ledger 

2. Departmental allotment ledger 

3. Quarterly report of appropriation and allotment operations 

4. Monthly schedule of collections and deposits 

5. Monthly schedule of disbursements (if vouchers are paid by local disbursing 

officers) 

Departmental Appropriation Ledger. An appropriation ledger should be maintained 
by the departments in order that the head of the department may he informed at all 
times as to the amount of the appropriation that remains unallotted. The existing form 
may be continued to be used for this purpose. 

Departmental Allotment Ledger. The departmental allotment ledger recommended 
is quite similar to that recommended for' the Division of Central Accounting and Re¬ 
porting. It should be so ruled, hojwever, that it may serve as a register of all documents 
as well as an allotment ledger account for each “purpose” allotment made to a spend¬ 
ing agency. The form suggested is a loose-leaf form ruled for pen posting, and the 
ruling should be as follows: 

1. Line number 

2. Date 

3. Document number 

4. Kind of document 

5. Disbursements 

a. Object 

b. Amount 

6. Encumbrance 

a. Debit 

b. Credit 

c. Balance 

7. Allotments 

a. Debit 

b. Credit 

c. Balance 

8. Line number 

The upper section of the sheet should provide space to indicate the fund from which 
the appropriation is made, the appropriation and allotment symbol, the name of the 
department or institution, the subordinate organization unit, the title of the allotment, 
and the quarter covered. 

The present accounting regulations of the state provide that all expenditure docu¬ 
ments shall (1) originate in the office from whose appropriation the expenditure is to 
be made, (2) be approved by the head of the department responsible, and (3) he en¬ 
tered upon the books of the department authorizing the expenditure. It. therefore, 
follows that the appropriation accounts of each department will at all times! agree 
with the same accounts maintained in the central accounting office, with the possible 
exception cf documents in transit. 

The expenditures made from the appropriations through allotments approved by 
the Governor should he recorded in the allotment ledger from the following posting 
media: 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


261 


1. Appropriations—appropriating warrants 

2. Allotments—allotment advices 

3. Encumbrances 

a. Salary commitments 

b. Purchase orders 

c. Contracts 

d. Requisition for advancement of funds 

e. Storehouse requisitions (Used only if stores are financed by working capital 
fund) 

4. Liquidations and disbursements 

a. Payrolls 

b. Vouchers 

c. Refund of advances to disbursing officers 

d. Storehouse issue invoices (Used only if stores are financed by working capital 
fund) 

It will be noted that the rulings of the departmental allotment ledger provide a 
column for the insertion of the symbol number of the object of expenditure for which 
the payment is made. This column is inserted in the form in order that an analysis of 
the expenditures under each given allotment may be prepared periodically, at least an¬ 
nually, for budget purposes. This method is suggested in order to obviate the necessity 
of keeping a separate sheet for each, object. 

Quarterly Report of Appropriation and Allotment Operations. This statement will 
only be required of the spending agencies quarterly, since departmental reports will be 
supplied monthly to the Budget Division, under the proposed plan, by the Division 
,of Central Accounting and Reporting. This statement should be supplied quarterly to 
the Budget Division and the Central Accounting and Reporting Division in order that 
the records of the spending services may be checked with the books of the central ac¬ 
counting office. 

Monthly Schedule of Collections and Deposits. A copy of this schedule should be 
supplied to the central accounting office at the close of each month to report collections 
and deposits by funds, and by appropriations, if the receipts of the agency are reallotted 
to it by the Budget Office. Upon receipt of this) schedule In the central accounting office 
it should be checked with the daily deposits already recorded on the books of the Central 
Accounting and Reporting Division. If in agreement it should be filed, but if not in 
agreement the difference should be ascertained and the account reconciled, the depart¬ 
ment being advised of any difference so that it may adjust its records to conform to 
those of the central accounting office. 

Schedule of Disbursements. A copy of this schedule should be supplied to the Di¬ 
vision of Accounting and Reporting at the close of each month or each time reimburse¬ 
ment is requested. It should be accompanied by the original vouchers paid by the dis¬ 
bursing officers. The schedule should be prepared in detail by voucher numbers. A 
separate schedule should be prepared and forwarded to the central accounting office for 
each appropriation recapitulated to report the disbursements made for each “purpose" 
allotment. This will supply that office with the data needed by it to reestablish the dis¬ 
bursing officer’s total credit and to charge the allotment accounts for which the disburse¬ 
ments 'were made. This form will only be used by those agencies paying part of their 
own accounts through a local disbursing officer out of an imprest fund. 

Summary of Recommendations. In this section a complete revision of the present 
system of central accounting and reporting and a uniform system of departmental ac¬ 
counting is recommended and discussed. The specific recommendations are summarized 

below: 

The Governor should he relieved of the duty of establishing uniform budget classifications 
and this duty should be transferred to the proposed State Comptroller’s office. 

\ The State Examiner and Inspector should be relieved of the duty of formulating and 
installing uniform systems of accounting and reporting in the state departments and establish¬ 
ments, and this function should be transferred to the proposed State Comptroller’s office. 

The State Examiner and Inspector should be relieved of the duty of post-auditing the finan- 


262 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


rial records of the departments and institutions of the state government, and this duty should 
be transferred to the State Auditor. 

The State Auditor should be relieved of his present pre-audit, warrant-issuing, and book¬ 
keeping duties, and these functions should be transferred to the proposed State Comptroller s 
.office. 

The State Auditor should be assigned the duties of reviewing all state financial transac¬ 
tions for the purpose of determining that all requirements by the legislature in respect to the 
collection, custody, and disbursement of public funds have been duly complied zvith and that 
all state officers having the collection, custody, or disbursement of public funds can faithfully 
account for moneys coming into or that should come into their possession. 

The provisions of the state depository acts now permitting the departments and institutions 
to deposit certain designated collections in one or more of the state depository accounts, and 
to disburse these deposits out of these accounts by their own checks, should be repealed; and 
all of these collections should be “covered in” to the State Treasury; the private trust receipts 
should be credited to the respective private funds; and all other depository receipts should 
be credited to the fund or funds from which appropriations are non> made by the legislature 
for the support of the activities of the collecting agencies, or to the credit of designated special 
(cash) expendable funds. 

The laws creating the so-called revolving funds, other than real working capital funds ; 
for prison and like industries, should be repealed; and all of these collections, including work¬ 
ing capital funds, should be “covered in” to the Treasury; and the working capital receipts 
should be credited to the respective working capital (cash) funds; and the receipts of the 
other revolving funds should be credited to the fund or funds from which appropriations are 
nozv made by the legislature for the support, of the collecting departments and institutions; 
but these repayment collections should be made available to and supplement the annual appro- ■ 
priations of the respective departments and establishments covering such moneys into the State 
Treasury. 

The statutes now authorizing certain examining boards and other state agencies to re¬ 
tain their collections and to disburse these receipts independently of the State Auditor’s office, j 
should be repealed, and all such collections should be “covered in” to the State Treasury to 
the credit of the general fund or to designated special expendable (cash) funds. 

A law should be enacted to require the State Comptroller or his designated assistant to 
countersign all checks issued by the State Treasurer. 

The present law 1 zvith reference to the endorsement of “non-payable” warrants by the 
State Treasurer should be amended to require the Treasurer, with counter signature of the 
State Comptroller, to issue a registered warrant note in exchange for and payment of zvarrants 
issued by the State Comptroller, zvhen there are not sufficient moneys in the funds of the 
Treasury applicable to the payment of such demands at time of presentation. 

If the budget and accounting bill outlined in the section on the “State Budget System” 
is enacted into law, it is suggested that the following recommendations, all of which may 
be accomplished by administrative action, be put into effect. 

The numerous funds of the state government shoidd be classified into not more than nine 
general classes. 

The State Treasurer should be required to install and maintain a more simplified and 
modern system of Treasury accounting. 

A modern system of fund (budget) and proprietary accounts should be installed in the 
proposed State Comptroller’s office. 

The present departmental system of budget accounting and reporting should be standardized. 

All appropriations made by the legislature and all special fund expenditures of the de¬ 
partments should be allotted by the Governor by bureaus or divisions and by character of ex¬ 
penditures. 

The lump sum appropriations of the institutions should be allotted by activities (purpose) 
as suggested in the recommendations under “State Budget System.” 

The present system of decentralized disbursing should be discontinued, and small imprest 
funds should be provided for these departments and institutions requiring available cash to meet 
immediate demands. 


>Stat. 1931, Sec. 375S. 









ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


263 


Contracts should be registered and certified by the proposed State Comptroller and en¬ 
cumbered on departmental and central accounting records. 

Financial control should be established over personal services and these services should 
be encumbered against the allotments. 

Departments billing taxes and other revenues should be required to schedule such billings 
daily and one copy of all such billings should be sent to the proposed Division of Central Ac¬ 
counting and Reporting of the State Comptroller’s office at the close of each month. 

A property accounting system should be installed in the departmental service, and these 
agencies should be required to render an annual inventory to the proposed State Comptroller’s of¬ 
fice and the State Auditor’s office. 

The State Comptroller should prepare a manual of Accounting and Business Procedure: 
( 1 ) To make known to all state agencies the essential principles which find expression in the 
system of financial administration of the state; and ( 2 ) to furnish concrete illustrations of 
the application of those principles. 

COLLECTION AND CUSTODY OF PUBLIC FUNDS 

In Oklahoma, as in other states, practically every state agency collects state money 
from one or more sources. Such collections may be divided into four classes: (1) Col¬ 
lections “covered in” to the State Treasury; (2) collections retained in the state de¬ 
pository accounts of the State Treasury and disbursed by the depositing agencies; (3) 
collections deposited in the state depository accounts to the credit of working capital 
and so-called revolving funds; and (4) those collections of examining boards and other 
state agencies which are not now required by law to be deposited with and be disbursed 
through the State Treasurer. From the viewpoint of the laws governing the collection 
and deposit of public funds with the State Treasurer, collections may be grouped into: 
(1) Property taxes collected through county treasurer; (2) school revenues collected 
by the Commissioners of the Land Office; (3) tax and other revenues collected by the 
State Tax Commission; (4) federal aid grants collected by the A. and M. College; and 
(5) miscellaneous taxes and other revenues and non-revenue receipts of the departments 
and institutions, including licenses, permits, fees, and sales of products collected by state 
agencies and deposited in the State Treasury, to the credit of thje general fund, revolving 
funds, special funds and departmental depository accounts. 

Collections Through Counties. The revenues collected by counties for the state are 
old delinquent state property taxes, part of which is apportioned and distributed for 
school and highway purposes. These moneys are covered into the State Treasury. 

School Moneys Collected by Land Office. The revenue collections of this office rep¬ 
resent (1) rental and interest on loans of endowment funds creditable to common schools 
and institutions of higher learning, and (2) certain recording and transfer fees creditable 
to the general fund. These revenue collections are covered into the State Treasury and 
are appropriated by the legislature. 

The non-revenue collections of the Land Office represent the proceeds of the sales of 
land, sales of mineral rights and minerals, such as oil and gas leases, bonuses and royal¬ 
ties from producing wells, and the repayment collections of principal of loans made to 
Oklahoma farmers. These collections are credited to the principal of the endowment 
funds. The principal of these funds is held in trust and not expended except in the case 
of Section 33 land in Old Greer County. These non-revenue collections are deposited, in 
the State Treasury to the credit of “Treasury Account No. 3—School Lands Department.” 
These moneys are disbursed in the form of loans and investments and while they are 
recorded on the books of the State Treasurer’s office, similar to a depository account in 
a bank, they are not recorded or controlled on the books of the State Auditor. 

Moneys Collected by the State Tax Commission. 1 The major portion of state revenue 
is collected by the Tax Commission. The collections of the last three completed fiscal 
years and the sources and distribution thereof are given below. 


Tteport of Oklahoma Tax Commission, 1934, pp. 113-15. 



ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


264 


SOURCES 


Item 


Income Tax _ 

Corporation License _ 

Inheritance Tax _ 

Gasoline Excise Tax 

Gross Production Tax_ 

Motor Vehicle License 

Motor Carrier Tax_ 

Sales Tax _ 

Beverage License and Tax 

Gross Receipts Tax _ 

Game and Fish License 
Petroleum Excise Tax 
Miscellaneous Revenue __ 

Total _ 


Fiscal Year Ending June 30 


1934 

1933 

1932 

$ 1,774.811.74 
677,305.37 
144,511.60 
. 10,523,418.66 
4,790,603.62 
3,032,974.74 
523,355.52 

3 . 824.855 01 

$ 1,896.717.32 
757,000.28 
627,387.65 
9,686,754.22 
3,794,023.05 
3,294,961.07 
194,593.19 

$ 1,049,624.48 
843,038.79 
144,984.60 
11,039.858.61 
4,117,752.58 
4,765,080.07 
176.942.29 

'716 309.00 

9,591.19 

166,238.75 

215,756.73 

2,197.67 

45,675.99 

145,953.50 

14,054.72 

2,238.83 

57,285.65 

157,143.25 

3,360.02 

.$26,401,929.60 

$20,459,359.82 

$22,355,070.34 


DISTRIBUTION 



Fiscal Year Ending June 30 


Fund 

1934 

1933 

1932 


State Funds: 

1. General Fund _ 

2. Highway Fund _ 

3. Common School Equalization Fund_ 

4. Treasufy Notes Sinking Fund _ 

5. Tax Collection and Enforcement Funds 

G. Special Funds _ 

7. Trust Funds _ 

Total State Funds _ 

County Funds; Taxes Collected for Counties; 

1. Income Taxes _ 

2. Gasoline Excise Taxes _ 

3. Gross Production Taxes _ 

4. Motor Vehicle Licenses _ 

5. Sales Tax _ • _ 

6. Beverage Taxes _ 

Total Counties _ 

Collections in Suspense: 

1. Refunds _ 

2. Held in Escrow _ 

3. Unapportioned _ 

Total Collections in Suspense _ 

Grand Total _ 


$ 3,578,306.54 
6,149,104.92 
1,420,017.86 
2,999,466.84 
684,285.75 
397,953.81 
537.10 

$ 3,749,319.24 
8,035,778.62 
620,104.77 
468,489.45 
356,358.68 
160.008.22 

$ 3,369,544.45 
9,980,424.44 
661,304.28 

458,996.14 

601,510.51 


$15,229,672.82 

$13,390,058.98 

$15,071,779.82 

$ 902,068.42 

$ 882,651.22 

$ 651,798.90 

2,499,549.03 

2,354,790.97 

2,354,608.47 

_ 1,638,674.63 

1,165,847.04 

1,339,580.11 

1,728,870.51 

1,869,290.02 

2,709.579.46 


3,041,962.01 


652,421.06 


$10,463,545.66 

$ 6,272,579.25 

$ 7.055,566.94 

.$ 85,872.06 

$ 16,793.16 

$ 47,293.45 

694,433.40 

736,603.83 

117,561.68 

71,594.34 1 

43,324.60 

62,868.45 

$ 708.711.12 

$ 796,721.59 

$ 227.723.5S 

.$26,401,929.60 

$20,459,359.82 

$22,355,070.34 


All of the above collections of the State Tax Commission are first deposited in the 
respective depository accounts of the state treasury. After the allocation of the moneys 
collected, the proportion of taxes and other dues collected for state purposes are covered 
into the treasury, and that part allocable to local governments is paid over to the coun¬ 
ties by the State Tax Commission and the State Highway Commission by checks drawn 
on the depository accounts. The refunds of taxes and refunds' of amounts paid under 
protest are also disbursed directly by the Tax Commission out of the Commission’s depos¬ 
itory account. 

Federal Aid Grants Collected by the A. and M. College. Section 8528 of the Okla¬ 
homa Statutesl, 1931, provides that the State Board of Agriculture “shall elect one of 
its members treasurer of the Board, and his duties as treasurer shall be the receipt and 
custody^ of funds received from the United States government for the benefit and support 
of the Agricultural and Mechanical College at Stillwater; and he shall be responsible 
. . . for the proper accounting of such funds, and shall make) such reports a s the board 
may require, turning over to the State Treasurer promptly all state funds that . . . should 
be paid into the! State Treasury.” 


Deduct. 















































































ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


265 


At the time of the enactment of this statute the federal aid moneys received by the 
stale from the national government under the Morrill-Nelson Act, Hatch Act, Adams 
Act, Smith-Lever Act, Purnell Act. Capper-Ketcham Act, and the Federal Cooperative 
Act, were transmitted to the Board of Agriculture and deposited by it in the state 
depository account. At the present time, however, these moneys are collected by the A. 
and M. College and are deposited in several treasury depository accounts and disbursed 
by the College independently of the State Auditor’s office. The amounts collected in the 
last two fiscal years were as follows: 


Title of Fund 


Morrill-Nelson Act _ 

Hatch Act _ 

Adams Act _ 

Smith-Lever Act _ 

Purnell Act _ 

Capper-Ketcham Act _ 

Federal Cooperative Act 

Total - 


Fiscal Year 
1934 1983 


,_$45,520.43 
._ 15,000.00 
15,000 00 
. 175,971.67 
60,000.00 
34 568.90 
28,000.00 

.$374,061.00 


$45,000.00 

15.000.00 

15,000.00 

175,971.07 

60,000.00 

34,568.90 

28,000.00 

$373 540.57 


These monleys, like all other collections of the agencies of the state government, 
should be “covered into” the treasury and be disbursed by state warrants. In this case, 
however, these revenues should be funded to special revenue and expense (cash) funds to 
restrict their disbursement to the purposes for which contributed by the national gov¬ 
ernment. 

Miscellaneous Collections by Other State Agencies. There is no uniformity in the 
laws governing the receipt and disposition of sundry miscellaneous collections. Some- 

receipts are funded to the so-ca led revolving funds, some are treated ns repayments to 
general fund appropriations, some are funded to .special funds, many of the receipts are 
deposited in one or more special deposit accounts, and some of the state’s receipts are 
retained by the collecting agencies and disposed of without any accounting being made 
for such collections. 

Conclusions and Recommendations. To make deposit and funding of all collections 
uniform, the legislature should give consideration to the repeal of all laws (f) permitting 
the retention of government moneys by collecting agencies and (2) allowing certain de¬ 
partments and institutions to retain in and disburse money out of their state depository 
accounts, except to cover all collections into the State Treasury to the credit of some 
designated fund or funds. 

The state depository law was enacted not only to establish uniformity in the daily 
deposit of collections in designated state depositories but, evidently, also to relieve the 
State Treasurer of certain duties with respect to enforcing collection of dishonored 
(“hot”) checks and of making miscellaneous refunds and other like adjustments before 
such funds were deposited to his credit. 

To make it practicable to cover all moneys collected into the State Treasury; to the 
credit of the fund or funds to which creditable, and of subsequently adjusting such 
credits because of refunds and the like: 

All state moneys collected by departments and establishments of the state government 
should be deposited zvith the State Treasurer and be covered into the treasury. In this con¬ 
nection, see recommendations in the preceding section on “Accounting and Reporting.” 

A special imprest fund should be established zvherever necessary for the use of the de¬ 
partments and institutions in making refunds and adjusting dishonored {“hot”) checks. 

All expenditures from such imprest funds should be reported to the State Comptroller at 
the close of each month for his audit, approval, and reimbursement. 

Uncollectible checks included in the deposits of state agencies should be reported back to 
the depositing agency and be reimbursed by such agency from the special imprest fund pro¬ 
vided above. 

Section 8528 of the Oklahoma Statutes. 1931, should be repealed since all federal aid 

















266 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


collections affecting the A. and M. College are now collected by it directly from the national 
government, and, if the recommendations herein made are followed, all such collections will 
hereafter be covered into the State Treasury to the credit of designated special revenue and ex¬ 
pense (cash) funds. 

To facilitate the handling of refunds and adjustments, the following procedure is 
recommended for all departments and establishments of the state government required 
to refund collections or make adjustments for “hot” checks; 

All collections of state agencies should be deposited with the State Treasurer daily, or in 
a depository bank to the credit of the State Treasurer. A report of such deposits should be 
mailed to the Treasurer or accompany each deposit made directly with the State Treasurer 
showing the sources from which collected and fund or funds creditable. An imprest fund zvill 
be established for the use of each such department for making refunds or adjustments. A 
monthly report should be submitted to the State Comptroller of all such refunds and adjust¬ 
ments accompanied by refund vouchers certified and approved by the head of the department 
upon the basis of which the imprest fund will be reimbursed for all such transactions. All 
such refund expenditures should be charged to the specific revenue and fund account originally 
credited at time of deposit, or to refund or expense accounts chargeable, if appropriated by the 
legislature. 

Accounts should be set up on the books of the proposed Comptroller’s Office to establish 
a control over billings, collections, and deposits, and the following routine should be employed 
in operating such a system: 

Billings should be listed on schedules in summary or by bill numbers and copies of these 
schedules should be forwarded to the proposed State Comptroller’s office at the close of each 
month. This may be produced as a by-product of billing if billing machines are used. 

These schedules will supply the basis for an entry ta charge taxes and accounts 
receivable (and the billing agency with the responsibility of collection) and to credit 
the revenue accounts with amounts earned and deferred credits with the unearned 
amounts billed. 

The collections should be listed on schedules in summary or by receipt and bill numbers 
and copies of these schedules should be forwarded to the Comptroller’s office at the close of each 
month. These likewise may be produced as a by-product if made on a machine. 

These schedules will supply the basis for an entry to charge the collecting agent and 
(1) to credit accounts receivable and uncollected taxes for the collection of items pre¬ 
viously reported billed, and (2) to credit the revenue accounts for amounts not previously 
billed. 

The deposit receipts issued by the Treasurer should be countersigned by the State Comp¬ 
troller. If so countersigned, copies of such receipts should be retained by the Comptroller and 
be used by him to charge the Treasurer and credit the depositing officer. 

To make sure that all collections are deposited in the Treasury and' that all deposits 
are taken up by the Treasurer and the departments in the proper fund account, the 
Treasurer should render a daily schedule of treasury deposits by classes ot funds, and 
the collecting officers should render a monthly schedule of all deposits made in the 
Treasury by sources and classes of funds. No bookkeeping entries would be made from 
these schedules in the Comptroller’s office. These reports would be used for audit pur¬ 
poses only. The deposit reported bv the department should be checked againt the 
daily reports of the Treasurer and should be otherwise audited to see that all deposits 
have been reported and that they have been funded correctly. 

The above procedure is suggested because of the following advantages over the 
present; system; (1) It provides a basis of accounting by departments and by the State 
Treasurer of gross receipts; (2) it makes all state moneys available to the State Treas¬ 
urer immediately upon collection; (3) it establishes uniformity in accounting for all 
collections, refunds and adjustments of revenues; and (4) it provides a control 5 over all 
state collections and a means whereby all refunds and miscellaneous adjustments of 
collections will have the approval of the State Comptroller. 



ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


267 


FUNDING SYSTEM 

If the finances of a government could be handled like those of a private corporation 
it (would be unnecessary to recognize fund distinctions, as all receipts would be covered 
into a single pot, or general fund, from which all payments to meet obligations would 
be made. This would greatly simplify the accounting and reporting work, as but one 
set of books would be required to gather the accounting information needed by the 
management. Unfortunately, this condition does not obtain in government. A govern¬ 
ment has the responsibility of handling large sums which are of a private trust char- 
acter, and even in respect to public funds, many legislatures, particularly of Oklahoma, 
have, as a matter of policy, earmarked much of their revenue for particular purposes. 
The obligations and limitations that are thus set up can be met only by handling each 
category of receipts and expenditures as a separate accounting proposition. This is 
done by treating each such category as a separate “fund.” Each such fund has, as it were, 
its own accounting personality, its! own receipts and disbursements, its clwn resources 
and obligations. The formal establishment of definite “funds” and the funding of all 
receipts are universally practiced by governments to safeguard resources and to restrict 
and control expenditures. 

The restrictions that are placed upon the expenditure of government moneys ne¬ 
cessitate a proper classification of funds and a formal procedure in utilizing the resources 
of a fund. The procedure for handling each fund, therefore, involves (1) The method 
of authorizing the expenditure of such resources, (2) the operation of funding receipts, 
and (3) the operation of spending. 

The authorization of expenditures and the operation of spending is controlled by 
appropriations and the subsequent allotments made of the proposed expenditure. The 
funding of receipts is controlled by the allocation of the revenues to funds in accordance 
with the acts creating them. Manifestly, therefore, the accounts should be so kept and 
reports so rendered that the revenues and expenditures on account of each fund can 
be clearly determined. The system of accounting recommended for each category of 
funds is that outlined in the preceding section on “Accounting and Reporting.” The 
classification of funds recommended for adoption is hereafter given. All funds now 
recognized by the legislature, but excluded from this list, should be abolished; since no 
real purpose is served by continuing them, inasmuch as any deficits in the more im¬ 
portant cnesi omitted, for example, the Fire Marshal’s fund, and the C. A. N. U. support 
and maintenance fund usually are financed from the general fund. 

Present Classification of Funds. The fund distinctions now recognized by law are 

as follows: 

A. General Fund 

B. Educational Funds 

1. Section 13 Funds 

2. New College Fund 

3. Common School Equalization Fund (VV.S.A.) 

4. School: y 4 Mill Fund 

5. Common School: Barber Fund 

6. Union Graded and Consolidated Fund 

C. Highway Funds 

1. State 

2. N.R.H. Trust Funds 

D. Public Building Fund 

E. Bond and Coupon Funds (one for each bond issue) 

F. Miscellaneous Special (Cash) Funds 

1. Examining Boards (separate fund for each board) 

2. Hospital Funds 

3. Game Protection Fund 

4. Fire Marshal Fund 

5. Building and Loan Auditor 

6. Motor Vehicle Enforcements 

7. Firemen’s Pension Fund 

8. Capital Lands Donated 

9. Wichita Forest Reserve 

10. Ouachita Forest Reserve 


26S 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


11. Soldiers’ Relief Commission 

12. Escheated Funds 

13. Special Emergency Relief Fund 

14. Highway Collection Fund 

15. Gas Tax Collection Fund 

16. C.A.N.U. Support and Maintenance Fund 

17. Sub-Penitentiary Fund 

18. H.B. No. 416 Funding Fund 

19. Proration Fund 

20. Auto Theft Fund 

21. Tax Commission Fund 

22. Enforcement Fund 

. 23. Sales Tax Collection Fund 

24. Income Tax Collection Fund 

25. Delinquent Registration Fund 

G. Revolving Fund's 

H. Depository Accounts 

Proposed Classification of Funds. The particular funds recommended for retention 
nnd* theirj classification are given below: 

I. Public Funds 

A. Expendable Funds 

1. General Fund (Unrestricted receipts) (Restricted receipts—percentage 
tax collections, etc.) 

2. Educational Funds 

a. Common School Equalization Fund (C-l earnings and state taxes) 

b. Construction of Buildings, Consolidated or Union Graded School 
Districts (C-2 earnings and principal) 

c. New College Funds (C-3 earnings) 

d. State Educational Institutions Fund (C-4 earnings) 

e. Weak School Aid 1 

3. Highway Funds (Tax receipts, federal aid and highway bonds) 

4. Public Building Fund (Building bonds, land sales and rent of Sec. 33 
lands, other than Greer County lands) 

5. Bond Funds (Bonds sold for construction of dormitories, etc.) 

6. Special Revenue and Expense (cash) Funds 

a. Game Protection Fund 

b. Proration Fund 

c. Auto Theft Fund 

d. Insurance Fund 

e. Delinquent Registration Fund 

f. Examining Boards (list) 

g. Wichita Forest Reserve Fund 

h. Ouchita Forest Reserve Fund 

i. F.E.R.A. Funds 

j. Federal Aid for Vocational Education 

k. Morrill-Nelson Fund 

l. Hatch Act Fund 

m. Adams Act Funds 

n. Smith-Lever Act Funds 

o. Purnell Act Fund 

p. Capper-Ketcham Act Fund 

q. Federal Cooperative Act Fund 

7. Sinking Funds (Interest and principal) 

a. A. and M. College Sinking Fund 

b. University of Oklahoma Sinking Fund 

c. Oklahoma College for Women Sinking Fund 

d. Oklahoma University Infirmary Sinking Fund 

e. Treasury Notes Sinking Fund 

f. 1911 Funding Bonds Sinking Fund 

g. 1913 Funding Bonds Sinking Fund 

h. Public Buildings Bonds Sinking Fund 

’Special Common School Equalization Fund: Laws, 1927, Chap. 91; Stat. 1931, Secs. 





ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


269 


B. Working Capital Funds 

1. Twine Factory Fund 

2. Tag Factory Fund 

3. Furniture Factory Fund 

4. Brick Factory Fund 

5. Shoe Factory Fund 

6. Clothing Factory Fund 

C. Endowment Funds 1 (Interest and earnings transferred to Educational Funds, 

A2 funds) 

1. Common School Equalization Fund (Sections 16 and 36 lands) 

2. Union Graded Common School Fund (Section 33, Greer County) 

3. New College Fund (Land in lieu of swamp lands) 

4. State Educational Institutions Fund (Section 13 land) 

5. Public Buildings Fund (Section 33 land, except Greer County) 

6. A. and M. Student Loan Funds 

7 . University Student Loan Funds 
II. Private Funds 2 

A. Moneys Collected for Distribution to Local Governments 

1. Income Tax 

2. Gasoline Excise Tax 

3. Gross Production Tax 

4. Motor Vehicle Licenses 

5. Sales Tax 

6. Beverage Tax 

7. Firemen’s Pension Fund 

B. Moneys Held for the Benefit of or to be Distributed to Private Persons 

1. Escheated Estates 

2 Agency Funds of Institutions (List) 

The unexpended balances of each of these funds should remain available for the 
purposes for which created. Therefore, any law which now directs that the unexpended 
balances of any of the above funds shall be transferred to the general fund at the close 
of eaich fiscal year should be repealed. 

No explanation is needed as to the operation of any of the above funds. 

There is* an undoubted urge in every state to endow certain activities and to remove 
from the financing of those activities the uncertainty involved in submitting them pe¬ 
riodically to legislative scrutiny. Those interested in special activities are impelled to 
seek security for their special interest by the creation of special funds to be devoted 
exclusively to the financing of these activities. The procedure provides a degree of 
certainty upon which plans for the development and functioning of certain departments 
can be safely based. Nevertheless, from the point of view of sound financial admin¬ 
istration end of the effective funcfmning of democratic government, this practice cannot 
be too severely criticised. The burden of proof should always be in favor of passing all 
revenues through the general fund and placing them under control of the legislature. 

Only wbe^e the tax is apportioned on the basis of a principle which requires that 
the proceeds shall be devoted to special uses can the establishment of special funds be 
justified. Such justification, for example, is undoubtedly present in the case of special 
taxes on motor vehicles which rest on the principle that the cost of the highways should 
be assessed, largely against the users thereof. On the other hand, there is no such com¬ 
pulsion in f he c°se of certain special taxes, which are now allocated to educational funds 
and to a number of special funds. 

It may be a hardship to subject special activities to the vagaries of legislatures, but 
it is necessary to impose this hardship if democratic government is to function effectively 
and an adequate system of financial administration attained. The legislature is the 
Policy-making body. Its responsibility is to determine what activities are to be under¬ 
taken and to what extent they are to be conducted. 

There is no necessary relationship between the yield of specific taxes and the cost 
of carrying on given activities. The segregation of special revenues to special purposes 

Tor a description of the permanent school funds, see 14th Biennial Report of the State 
Superintendent of Public Instruction, pp. 125-29. 

Report balances on General Balance Sheet, among assets and liabilities. 



270 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


may result in an excess of revenues for certain activities and: an inadequacy of revenues 
for others. In order to operate an effective budget system all activities must be brought 
within its scope. Each activity must be evaluated with reference to all the other activi¬ 
ties, and the available revenues apportioned according to the relative importance of the 
various services as determined by the legislature. The segregation of special revenues 
to special purposes is an evasion of legislative responsibility. It destroys efficient finan¬ 
cial administration. It deprives the state of a periodic appraisal and examination of 
the activities being carried on and the relation of the costs of those activities to the 
revenues available. If the finances of the state government are to be placed upon an 
efficient basis all revenues should be brought under the control of the legislature through 
a budget system. Only where there is an obligation on the part of the state to use the 
proceeds from specific sources for special purposes should special funds be established. 

The extent to which the funds of the state are now permanently appropriated and 
earmarked for special purposes is shown by the following table: 


CONDENSED COMPARATIVE STATEMENT OF RECEIPTS OF THE FISCAL YEARS 1933 AND 1934 
CLASSIFIED BY FUNDS, SHOWING EXTENT TO WHICH REVENUES ARE NOW 
PERMANENTLY APPROPRIATED OR EARMARKED FOR SPECIAL 

PURPOSES 


Fund 1933 

A. General Fund Revenues: Unrestricted - $ 8,891,582.20 


B. General Fund Revenues: Restricted: 

1. Allocated to Tax Commission_ 373,751.64 

2. Allocated to (so-called) Revolving Funds - 821,181.02 


C. Other Restricted State Revenues: 

1. Educational Funds _ 901,240.84 

2. Highway Funds _ 12,246,244.37 

3. Public Building Fund _ 488.525.90 

4. Sinking Funds --- 467,083.89 

5. Working Capital Funds - 121,989.71 

6. Depository Account Funds - 2,308,697.81 

7. Special Funds _ 554,724.98 

8. Moneys not deposited in State Treasury _ 188,747.59 


Total Restricted Receipts _ 18,472,187.75 


1934 

$ 7,321,285.17 


664,330.81 

1,072,206.65 


1,759,225.16 

12,984,406.40 

131,250.00 

2,996,877.35 

83,838.59 

2,556,907.06 

773,300.12 

205,514.74 

23,227,856.88 


Total Revenue Receipts _ $27,363,769.95 

Percentage Restricted Funds are of Total Revenue Receipts - 67.51 


$30,549,142.05 

76.03 


The foregoing table shows that 1 76.03 per cent of the total receipts of the fiscal year 
1934 were not subject to legislative discretion in the appropriation of its resources for 
state purposes. 

Recommendations. To furnish a basis for administering funds, for observing their 
restrictions, and for correctly accounting for their receipts, expenditures, and financial 
status, the following recommendations are made: 


All laws should be repealed establishing the so-called revolving funds and all special funds 
not included in the above outline of “Proposed Classification of Funds.” 

The unexpended balance of each separate special fund retained (or created in the future ) 
shoidd remain available and be not lapsed to the General Fund or other funds at the close 
of each fiscal year. 

All collections applicable to a given fund should be funded to the fund to which it be¬ 
longs at time of deposit in the Treasury. 

The State Game and Fish Department should not be required to deposit its collections in 
the Treasury, through the State Tax Commission. 

The Comptroller should prescribe a uniform classification of all existing funds to be used 
by all departments and establishments in reporting receipts and expenditures, by his office, and 
by the State Treasurer in accounting for the financial condition and operations of the state 
government and the several funds thereof. 

The proposed Comptroller’s Office should maintain a separate set of accounts for each 
general class of funds and each distinct sinking (and interest ) fund recognized by the state 
government. 

The State Treasurer should maintain a separate set of Treasury accounts for each dis¬ 
tinct fund falling within each general class of funds, and the sources of all receipts of all 
moneys deposited to the credit of each distinct fund should be collected on the books of the 
Treasury Department. . - ' 




























ORGANIZATION AND ADMINISTRATION OP OKLAHOMA 271 

\ ’ 

The funds of the state should he classified as herein suggested. 

A formal and uniform procedure should be employed for the operation of each distinct 
'fund. 1 

Appropriations made from the general fund to supplement federal aid and other special 
funds should he transferred to such special funds at the beginning of each fiscal year to obviate 
the necessity of maintaining two accounts for like expenditures. 

As a matter of policy, the legislature should discontinue the practice of creating special 
funds, except where there is an obligation on the part of the state to use the revenues received 
from specific sources for special purposes. 

DISBURSEMENT OF PUBLIC FUNDS 

The extent to which disbursements are now made without the issuance of state 
warrants has already been discussed in the introduction of the section on “Accounting 
and Reporting” and in the description of the “Present Accounting Procedure” of this 
section. Over 25 per cent of the collections are now deposited in and disbursed out of 
the state depository accounts without being audited and without being spread on the 
bookkeeping records of the State Auditor’s office. The State Treasurer disburses general 
fund and other moneys for interest, principal payments of debt and commissions to the 
State Fiscal Agency, and the Commissioners of the Land Office disburse moneys on the 
Public Buildings Fund without the issuance of an auditor’s warrant. To correct this 
condition, certain recommendations were made. Consideration, however, should be given 
to the complete centralization of all disbursements and where necessary to the estab¬ 
lishment of small imprest funds for those agencies distant from Oklahoma City. 

To carry out this suggestion, all appropriations should be allotted; these allotments 
should be set up as credits similar to a deposit in a bank; and all vouchers should be 
submitted to the proposed State Comptroller for audit and settlement. It is further 
suggested that each spending agency voucher its accounts on a blank state warrant-check 
in quadruplicate; that it send the original and two copies of such warrant-check to the 
State Comptroller after approval by the head of the department or institution; and that 
the duplicate warrant-check be accompanied by the original supporting vouchers or 
invoices. 

The procedure suggested for auditing these transactions in the State Comptroller’s 
office would be that of seeing to it (1) that all supporting papers are attached; (2) that 
they have been properly checked and certified: (3) that the payments certified are 
legal; (4), that the prices paid are reasonable andi agree with contract prices; (5) that 
extensions and footings are correct; (6) that authorized approval signatures are affixed; 
and (7) that an allotment balance remains available for the payment of the particular 
goods or services certified and approved for payment. If the expenditure is in order, 
the State Comptroller should then insert the next consecutive warrant-check number, 
affix his signature in approval, detach the duplicate copy and the supporting papers for 
his files, and send the original and triplicate copies of the warrant check without sup¬ 
porting papers to the State Treasurer. 

If there is sufficient cash in the Treasury to pay the approved warrant-check, the 
State Treasurer shou d date the check, stamp the name of the bank upon which drawn, 1 
enter such check in his register of checks, and sign the original. After signatures, the 
original warrant voucher check should be mailed to the payee. The upper section of 
the triplicate copy of the document should be retained by the Treasurer and filed in his 
outstanding check file, while the lower section of the document should be forwarded to 
the state agency as an advice of payment, of the accounts submitted for settlement. 

The suggested procedure contemplates that payrolls shall continue to be audited 
and settled through the central accounting office. This may be accompli hed by having all 
payrolls mailed to the Comptroller’s office for payment about the 25th of each month 
for audit, and if changes occur they can be wired to the Comptroller’s office in time for 
correction. The payment of payrolls by the central office need not, as now, involve the 

^his will not be practicable until the Constitution is amended to permit the Governor 
and Treasurer to negotiate temporary loans to finance appropriation expenditures, as rec¬ 
ommended in the discussion of Section 23 of Article X of the Constitution in our appraisal 
of the present budget system. 



272 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


preparation of individual pay checks. Only one warrant-check should be prepared for 
each general clasis of funds from which payable, and this should be drawn in favor of 
the head of the department or disbursing agent of the institution. This check should be 
deposited in a payroll account and individual checks made out by the department or 
institution and handed to the officers and employees, as is the present practice. This 
bank account should be balanced each month, and the bank statement and cancelled 
checks should be forwarded to the Comptroller’s office for verification and adjust¬ 
ment and for filing with the original payroll submitted for payment. 

The suggestion that the state disbursements be completely centralized is not new. 
Many states now have this system, and during the past few years the states of Virginia, 
Alabama, Maine, Iowa, and New Hampshire have adopted this procedure. 

The State Comptroller’s office should, of coarse, be admitted. As previously rec- 
commended, the State Auditor should perform a continuous audit of the State Comp 
troller’s office. 

It is recommended that: 

The State Comptroller should settle all claims and draw all state warrants on the State 
Treasurer, and the State Auditor should he relieved of this function. 

The State Auditor should be required to make a post-audit of all transactions of the 
State Comptroller’s office. 

A standard vouchering procedure should be established to require all state agencies to 
voucher their accounts for payment on a summary warrant-check in quadruplicate. 

Small imprest funds should be established for agencies distant from Oklahoma City, where 
necessary; and reimbursements should be made only for such vouchers or portion of them 
as are audited and approved by the State Comptroller. 

BONDING OF STATE OFFICERS 

The Constitution makes no provision for the bonding of state officers and em¬ 
ployees, in order to insure fidelity in the performance of their work or in the handling 
of public moneys. Tlaere are no general statutes with reference to the bonding of 
public officers^, except one relating to reelection bonds (Section 3405) and one au¬ 
thorizing sureties to become severally liable! where the bond of any official amounts to 
more than $1,000 (Section 3425). The officials required to be bonded and the amount of 
such bonds are usually incorporated in law establishing a given office. State of¬ 
ficers and employees to the number of 778 are required to be bonded to the state. 
Only two of this number have failed to comply with the statutes—one, because he could 
not qualify until his books had been audited by the State Examiner and Inspector, 
and the other, because he overlooked the fact that he was, by law, required to give 
a bond. 

The bonds are required to be secured by qualified sureties'. In some cases the 
law specifies! that bonds must be made with a surety company. As a matter of cus¬ 
tom all bonds of state employees are written by qualified guaranty and surety com¬ 
panies. Premiums on the bonds are paid by the state, with the exception of the 
premiums on the bonds of the bank liquidating agents and tag agents. The premiums 
paid are not limited by law. They range from $2.50 to $10 per thousand. Most 
of the! bonds are written at the $5 premium rate. In questioning these rates! it was 
learned that they are high because of the failure of the state to keep its audits of 
fiscal officers current and because of the lack of financial control over the collecting 
officers. 

There is no uniformity in the approval of bonds. They are now approved by the 
Governor, the Attorney General, the Supreme Court, and the individual department 
heads. All of the bonds are not filed with the Secretary of State; most of them 
are filed in the respective departments. 

Premiums on bonds of state officers and employees are now costing the state! ap¬ 
proximately $17,000' per annum. The largest; premium paid is for the "three bonds of 
the State Treasurer. He is bonded for $750,000 at an annua] cost of $2,250. While 
examination of the amounts of the bonds does not disclose that the amounts are 
excessive, it does appear that many employees are bonded who have neither the handling 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


273 


of cash, securities or other property, or any great responsibility or opportunity for 
connivance against the state’s interests. 

It is suggested that a study be made of this subject by the heads of the departments and 
establishments, and that they report their findings to the Governor with appropriate recom¬ 
mendations. 

DEBT ADMINISTRATION 

Authority of State to Incur Indebtedness. The incurrence of debt by the state 
government is authorized by Article X of the Constitution. The purpose for which 
debt may be incurred and the conditions and limitations under which the state may 
become obligated are outlined in this article as follows: 

1. The state may contract debt to the extent of $400,0110 to finance casual deficits or 
failure in revenues, or for expenses not provided for (Section 23). 

2. The state may eonti'act debts to repel invasion, suppress insurrection, or to defend 
the state in war (Section 24). 

3. The State may contract additional indebtedness only under the following provisions: 
It must be authorized by law and be for some work or object to be distinctly specified therein; 
such laws must impose and provide for the collection of a direct annual tax 1 sufficient to pay 
the interest on such indebtedness and to retire the principal within 25 years; and no such 
law shall take effect until it has been submitted to the people and shall have received a ma¬ 
jority of all votes cast for or against it (Section 25). 

Other constitutional provisions of Article X relating to debt, provide: (1) That 
the legislature shall provide for levying a tax, annually, sufficient to pay the annual 
interest and principal of all debt within 25 years from the final passage of the law 
creating the debt (Section 4) j 1 (2) that the state shall not assume the debt of any 
county or other political subdivision of the state except as required by rhe Enabling 
Act; (3) that the credit of the state shall not be given, pledged or loaned to any 
individual, company, corporation, or association, municipality, or political subdivision 
of the state (Section) 15) ; (4), that all laws authorizing the borrowing of money by 
or on behalf of the state shall specify the purpose for which) the money is to be used, 
and the money sen borrowed shall! be used for no other purpose (Section 16) ; finally 
(5) that no bond or evidence of indebtedness shall be valid unless endorsed and cer¬ 
tified by the State Auditor and Attorney General of the state (Section 29). 

Chapter 27 of the Oklahoma Statutes, 1931, contains four articles! with reference 
to debt: The first, Article 3, authorizes the issuance of funding bonds; the second, 
Article 4, authorizes the exchange and renewal of bonds; the third, Article 5, desig¬ 
nates the Attorney General as State Bond Commissioner, and the fourth, Article 11, 
relates to the Public Building Fund, and the bonds, authorized to be issued for the 
construction of public buildings. 

In addition to these statutes, Section 3758 provides that when there is not suf¬ 
ficient money in the Treasury with which to redeem warrants presented againstl him 
bjy the State Auditor, the State Treasurer shall (endorse and stamp the date of 
presentation on all warrants so presented, after which date they shall draw interest 
at the rate of 6 per cent per annum. This section further provides that when funds 
become available for the redemption of such registered warrants the Treasurer shall 
give notice of th|e fact in some newspaper published at the seat of government and. 
after the expiration of thirty days, the interest on such warrants shall cease. 

In actual practice, however, the Treasurer does not follow the procedure outlined 
in this section. Instead, all Warrants issued by the State Auditor are countersigned 
by the Treasurer’s office prior to release and are endorsed as. to whether the warrant 
is payable upon presentation or “noil-payable.” If “non-payable,” it is considered a 
registered warrant and bears interest from the date of issue. 

Other debt is authorized by the legislature in special acts. For example, in Chap- 


*At time of adoption of this provision the Constitution provided for a stare levy and 
assessment of general property taxes, but since this tax for state purposes was repealed in 
1933 this section should be amended to direct the legislature to provide other taxes than 
property taxes sufficient to pay the interest and principal of debt obligations. 



274 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


ter 164 of the Session Laws of 1933, the legislature authorized the funding of all out¬ 
standing general fund warrants in 1933, issued during the fiscal years ending June 30, 
1930, June 30, 1931, June 30, 1932, and June 30, 1933, by the issuance of negotiable 
treasury 5 per' cent notes, payable to bearer, in an amount not in excess of the total 
amount of such outstanding warrants and accrued interest; and in Chapter 126 of 
the same Session Laws, it is provided that on and after May 1, 1933, an amount equal 
to 40 per cent of the three cent gasoline excise taxes, theretofore credited to the state 
highway fund, shall be funded to a special sinking fund for the payment of the 
principal and interest on such obligations until the indebtedness shall have been paid. 
This Chapter (126) was amended by House Bill No. 29, of the 1935 session to reduce 
the percentage of the diversion of the gasoline tax to 15 per cent. However, House 
Bill Noi 217, of the same session, which/ provides for funding these treasury notes 
and any unpaid general fund warrants outstanding on June 30, 1934 (into ten-year 
funding bonds bearing interest not in excess of 3 per cent per annum), provides that 
the State Treasurer shall set aside “out of the first state general fund revenues col¬ 
lected each fiscal year,, commencing with the fiscal yeari 1935-36 and ending with the 
fiscal year 1945-46, one-twelfth of the sum sufficient to pay the interest on the funding 
bonds . . . and the maturing bonds due and payable during the fiscal year. . . .” 

The other debt authorized by the legislature relates to dormitory and University 
infirmary building bondsi. The first of these bonds was authorized in 1921 and sub¬ 
sequent legislatures have continued the authorization of such bond issues, but pro¬ 
vided in each instance that the payment of interest on and principal of such bonds; 
sha i be pa d out of rentals, charges and fees paid by students and patients by reserv¬ 
ing out of such receipts the amountsi needed each year to pay the annual bond ma¬ 
turities and accrued interest. 

The treasury notes, the dormitory bonds and the infirmary building bonds werq 
issued without being submitted to the people ,as provided by Section 25 of Article X 
of the Constitution. Probably this was done on the assumption that the notes were 
authorized under Section 3 of Article X, since the issuance of these instruments did 
nof increase the debt but funded it, and the dormitory and infirmary building bonds 
wore not considered state debt because the institutional operations/will produce sufficient 
revenue to pay the interest and liquidate the principal of the debt without the levy 
of special taxes. 


Amount 

A. Funded Debt: 

Funding Bonds _$ 100.00 

Publ c Building Bonds _ 126.5')0 00 

Dormitory Bonds _ 661,000.00 

University Infirmary Bonds _ 123,500.00 

Treasury Notes _ 12,453,000.00 


Total Funded Debt _ 

B. Other Debt: 

Outstanding Warrants _ 5,279,344.73 

County treasurers deposits _14,132.310.09 

Accounts Payable _ 711.020.53 

Liability Reserves _ 2,633.659.38 

Endowment Reserve _ 3,529,315.11 


Total Other Liabilities _ 

C. Gross Debt 

Less: Sinking Fund Assets_ 1,806.819.68 

Other Assets _ 25,178,862.40 


Total Offsets to Debt_ 

D. Net Debt, June 30, 1934 _ 


Payable From 

General taxes 
Sec. 32 lands 
Dormitory receipts 
Infirmary receipts 
Gasoline taxes 

$13,364,100.00 


26.285.649.84 

39.649.749.84 


26.985.682,08 

$12,664,067.76 


Funded Debt. Table I, which follows, shows the name and purpose, legal au¬ 
thority, amount of original issue, rate of interest, and the amount of outstanding 
funded debt of the state of June 30, 1934. 






















OUTSTANDING BONDED INDEBTEDNESS OF STATE 


ORGANISATION AND ADMINISTRATION OF OKLAHOMA 

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276 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


While Ihe full faith and credit of the state of Oklahoma is not specifically pledged 

to the payment of the dormitory and infirmary bonds, the state is morally responsible 

to th,e bondholders. 

Floating Debt. The floating debt consists of state warrants, accrued interest and 
the amount of private funds collected for local governments not yet paid over to the 
local subdivisions. 

Provisions for Liquidating Debt. Each of the acts authorizing the above bond is¬ 
sues have provided means for financing the principal as it matures: and the interest 
accruing each semi-annual period. The debt of the state government today is com¬ 
paratively small; but the interest paid out each, fiscal year on “non-payable warrants,” 
because of the restrictions now imposed upon the administration, amounts to a con¬ 
siderable sum. In view of this, the legislature should consider the adoption of a reso¬ 

lution looking toward an amendment of Section 23 of Article X of the Constitution, 
which now limits the temporary debt of the state to $400,000. The state, because of 
this section, registers its warrants and pays interest on these instruments at the rate 
of 6 per cent per annum. The amount of such, interest paid on outstanding warrants 
in the fiscal year 1934, amounted to $1,009,000V 1 

Under date of January 12, 1933, the then State Treasurer commented on this sub¬ 
ject, and issued the following press release; 

The State of Oklahoma should adopt a system for payment in cash of all debts or obli¬ 
gations growing out of legislative appropriations. Salary and wage claims and more par¬ 
ticularly merchandise and supply claims should be paid with warrants or vouchers which 
could be classified as “cash” and subject to handling the same as checks, money orders, bank 
drafts and similar cash items. It is improper and an antiquated system which calls for 
issuance by the great State of Oklahoma of “non-payable” warrants, which may be paid 
sometime—date unknown. Simply an I. O. U. Practically every state in the nation has 
adopted laws which enable the fiscal officers of such states to go into the open market and 
borrow sufficient funds, at prevailing market rates, for operation of state government. Ok¬ 
lahoma’s old-fashioned system, set up at the beginning of statehood more than a quarter of a 
century ago, contemplates issuance of warrants in payment of each claim filed against the 
state. At the beginning of each fiscal year and for the succeeding four or five months, the 
state is able to issue cash warrants and operate on a cash basis but about November 1st 
or December 1st it becomes necessary to start issuance of non-payable warrants, due to the 
fact that cash accounts become depleted and the total of these non-payable warrants increase 
steadily until the fiscal year ends on the follotving June 30th. These non-payable warrants 
draw 6 per cent interest from date of issuance to the date when called for payment and 
the interest runs into an enormous total. 

The State of New York adopted laws several years ago permitting the State Treasurer 
to borrow money on state notes, which are in fact a written obligation or promise by the 
State of New York to pay when current taxes are collected in a sufficient amount so to do. 
This plan enables him to pay salary and merchandise accounts and all other state obligations 
in cash. Last fall, under this plan, he borrowed money at a rate approximating seven- 
eighths of one per cent. Think of that as compared with the 6 per cent rate being paid by 
the State of Oklahoma and also think of the fact that our great state has unpaid, outstand¬ 
ing I. O. U.s scattered from Maine to California and Oregon to Florida.' The state of Min¬ 
nesota borrowed money in the open market, under the same plan, at a rate of 2 ner cent. 
Oklahoma’s financial condition is as good as any in the nation, with no bonded debt what¬ 
soever as a direct burden upon the shoulders of the taxpayers and it is my confident belief 
that money could be borrowed in the open market at from one per cent to two per cent at 
any time. This would not only save this vast difference in interest but would place the state 
on a cash operating basis and would do away with the present antiquated system of issuing 
I. O. IT.s, payable at some future time—date unknown. 

It is my sincere hope that the present legislative session will see to it that laws are 
passed, vesting power and authority in the State Depository Board whose membership in¬ 
cludes the Governor. State Treasurer and Attorney General, to issue state notes or tax 
anticipation certificates from time to time and as needs will demand in order that a more 
businesslike, systematic method may thus be provided for issuing cash warrants or vouchers 
in payment of the various obligations of the state as they appear. 


State Auditor’s Report, p. 27. 



ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


277 


Specifically, tlie steps to be taken, to conserve the state’s resources and to improve 
the administration of thei public debt are summarized beloKv; 

Section 23 of Article X of the Constitution should be amended to authorise the State De¬ 
pository Board to negotiate temporary loans to the amount of $1,500,000, to finance casual def¬ 
icits and appropriations made by the legislature in anticipation of the collection of taxes levied 
to finance the budget. 

The essential parts of the proposed state budget law should be embodied in the Constitution. 


CHAPTER XVI 

COMMISSIONERS OF THE LAND OFFICE 

“The Governor, Secretary of State, State Auditor, Superintendent of Public In¬ 
struction and the President of the Board of Agriculture,” according to Section 32 of 
Article VI of the Constitution, “shall constitute the Commissioners of the Land Office." 
The duties of the Commissioners are to “have charge of the sale, rental, disposal, and 
managing of the school lands and other public lands, and the funds and proceeds de¬ 
rived therefrom, under the rulesi and regulations prescribed by the Legislature.” The 
lands and the principal funds managed by the Commissioners are “a sacred trust” and 
“the faith of the state is . . . pledget! to preserve such lands and moneys and all 
moneys derived from the sale of any of said lands as a sacred trust and keep the 
same for the uses and pui’poses for which they were granted or donated. The Land 
Office of Oklahoma is thus like a great trust company managing real estate anjd in¬ 
vestments 

BASIC LAW 

The- national government in legislating for the publijc domain had by several acts 
reserved a vast acreage of public land for the use and benefit of the common schools, 
higher educational institutions, and public buildings. Such of these lands as lay with¬ 
in the Territory of Oklahoma were administered by the Territorial Board for the 
leasing of School Lands. In the Indian Territory, the public domain had been given 
originally to the Indians and ntone of it had been reserved for the various types of 
schools or for public buildings. On June 10, 1006, when a national act was approved 
“To enable the people of Oklahoma and of Indian Territory to form a constitution 
and state government and be admitted to the Union pn an equal footing with the 
original states,” the Congress of! the United States devoted six sections of the act (7 
to 12 inclusive) to the subject of these special Jands. 

Common School Lands. Section 7 of the Act granted Sections 16 and 36 in every 
township in Oklahoma Territory, and all indemnity lands heretofore selected in lieu 
thereof, to the state for the use and benefit of the common schools, with certain ex¬ 
ceptions of various federal reservations. 

Since no similar grant with respect to the Indian Territory could be made, Sec¬ 
tion 7 of the Act appropriated, in lieu thereof, the sum of five million dollars from 
the Federal Treasury for the use and benefit of its public schools. “Said appropria¬ 
tion . . . shall be held and invested by said state, in trust for the use and benefit of 
said schools, and the interest thereon shall be used exclusively in the support and 
maintenance of said schools.” Until the state was organized to receive this appro¬ 
priation, Congress provided that it should not be paid, but that the state should be 
allowed interest on it at the rate of 3 per cent per; annum. The first payment was 
made to the state on December 31, 1907, and| the remainder between then and June 
30, 1908. 

Section 11 of the Enabling Act also gave to the common; school fund 5 per cent 
of the proceeds of thfe sales of public lands lying within the| state “to be used as a 
permanent fund, the interest only of which shall be expended for the support of the 
common schools within said state.” 

Higher Educational Institutions Lands. Section 8 of the Enabling Act, with certain 
detailed provisions into -which it is not here necessary to go, granted Sections 13 to the 
state “for the use and benefit (1) of thJci University of Oklahoma and the University 
Preparatory School, one-third, (2) of the normal schools now established or hereafter 
to be established, one-third, and (3) of the Agricultural and Mechanical College and 
the Colored Agricultural Normal Universities, one-third.” The legislature of the state 
was authorized to determine the division of thie land or! the proceeds between the in¬ 
stitutions named in each of the three groups. The lands so reserved or the proceeds 
from their sale “shall be safely kept or invested and held by the state and the in- 


’Const., Art. XI, Sec. 1. 



ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


279 


come thereof, interest, rentals, or otherwise, only shall be used exclusively for the 
benefit of said educational institutions.” 

In lieu of internal improvement and swamp land grants which' had been provided 
by general land laws, Congress gave to Oklahoma for thei benefit of— 


The Oklahoma University _250,000 acres 

The University Preparatory School -._150,000 ” 

The, Agricultural and Mechanical College -251^1)00 ” 

The Colored Agricultural and Normal University -100,000 ” 

The Normal Schools now established or to be established-300,000 ” 


The lands granted by this Section were to be selected by the Board for the Leas¬ 
ing of the School Lands of Oklahoma immediately upon the approval of the Act. 

Lands tor Charitable and Penal Institutions and Public Buildings. Section S of 
the Enabling Act provided that Section 33 and all lands heretofore selected in lieu 
thereof, which were for charitable and penal institutions and public buildings, “shall 
be apportioned and disposed of as the Legislature of said 1 state may prescribe.” 

The Enabling Act made certain definite provisions regarding how the lands should 
be handled, which should be briefly summarized. Lands valuable for minerals, gas, 
and oil, could not be sold prior to January 1, 1915, but could be leased for periods not 
exceeding five years by public competition after thirty days’ advertisement,” in the 
manner to be prescribed by law, and all such leasing shall be done under sealed bids 
and awarded io the highest responsible bidder.” A fixed royalty was required in ad¬ 
dition to any bonus offered for the lease. “All proceeds front leases shall be covered 
into the fund to which that property shall belong.” (Section 8). 

Common school land might be appraised and sold in 160-acre tracts at public sale, 
“under such rules and regulations as the Legislature might provide,” preference right 
to purchase at the highest bid being given the lessee at thei time of such sale. The 
proceeds of sales were “to constitute a permanent school fund, the interest of which 
only shall be expended in support of such schools.” Landsi might be leased for periods 
not to exceed ten years. (Section 9). 

Regarding University lands and public institution lands, similar authority was 
given for sale or lease, but the period of leases was: restricted to not more than five 
years. The law also provided for appraisal by three disinterested appraisers “who 
shall be non-residents of the county in which the land is situated.” The appraisers 
were required to appraise land and improvements separately and in case the lease¬ 
holder does not become the purchaser, the purchaser pays to or for the leaseholder, 
the appraised value of ,the improvements and to the state the amount bid for the land 
without improvements. No bid for less than the appraisement can be lawfully ac¬ 
cepted. 

Article VI of the Oklahoma Constitution provided, as has been said, for the ad¬ 
ministration of the school lands and other public lands of the state by the ex-officio 
Board of Land Commissioners! and Article XI, Section 1 accepted the federal dona¬ 
tions and recognized them as constituting a sacred trust. 

In addition to the land and money that came to the Common School Fund from 
the national government, the Constitution 1 provided that the fund should receive “the 
proceeds of all property that shall fall to the State by escheat, the proceeds of all 
gifts or donations to the State for common schools not otherwise appropriated by the 
terms of the gifts, and such other appropriations, gifts, or donations as shall be made 
by the Legislature for the benefit of the common schools. . . . The principal shall 
be deemed, a trust fund held by the State, and shall forever remain inviolate. It may 
be increased, but shall never be diminished. The State shall reimburse said perma¬ 
nent school fund for all losses thereof which may in any manner occur, ana nol portion 
of said fund shall be diverted for any other use or purpose.” 

Section 3 of Article XI provides that the interest and income of the permanent 
school fund and the net income from leasing of its land shall be “apportioned among 
and between all the several common school districts of the State in proportion to the 
school population of the several districts.” Section 4 writes into the Constitution thje 


•Art. XI, Sec. 2. 








280 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


essential provision of the Enabling Act, with respect to the public building land, and 
Section 5 does the same for the higher educational institution land. 

Section 6 of Article XI reads: 

The permanent common school and other educational funds shall be invested in first 
mortgages upon good and improved farm lands within the State (and in no case shall more 
than fifty per centum of the reasonable valuation of the lands without improvements be 
loaned on any tract), Oklahoma State bonds, county bonds of the counties of Oklahoma, 
school district bonds of the school district of Oklahoma, United States bonds; preference 
to be given to the securities in the order named. 

The Legislature shall provide the manner of selecting the securities aforesaid, pre¬ 
scribe the rules, regulations, restrictions, and conditions upon which the funds aforesaid shall 
be loaned or invested, and do all things necessary for the safety of the funds and permanency 
of the investment. 

Other Important Statutory Law. The Enabling Act and the Constitution, as cited 
above, contains the basic law establishing the Commissioners of the Land Office, pre¬ 
scribing their duties and setting up the principal funds with which they work. Neither 
time nor space permits ofi a detailed analysis and presentation of the vomminous de¬ 
tailed statutory law that partakes of the nature of rules and regulations; but a few 
provision® of statutory law should be mentioned to give a background for an under¬ 
standing of the administration of the Land Office. 

Union Graded or Consolidated School District Fund, it will be recalled that the 
Enabling Act and the Constitution both left to the legislature authority to deal With 
the public lands set ,apart for charitable, penal, educational, and public building pur¬ 
poses. In 1913 x the legislature directed that the assets of that fund in excess of the 
amount required for the payment of all outstanding bonds and the interest thereon 
be transferred to “the Union Graded or Consolidated School District Fund.” This 
law remained on the statute books until 1917 when it was repealed by Chapter 222. 

The Union Graded or Consolidated School District Fund was created “to assist 
in constructing or paying for school buildings for consolidated school districts that 
have been, or may hereafter be constructed under existing laws pertaining to Union 
Graded or Consolidated School Districts.” 3 At present this fund is apparently receiv¬ 
ing only the proceeds from Section 33 of Greer County, as that county existed prior 
to November 16, 1967, together with the lieu lands. 

The Greer 13 Fund. For reasons probably historical in their nature, the lands of 
the old Greer County and the proceed^ resulting therefrom have been separately treated 
by the legislature. The 13 sections in the old Greer County are for the use of the 
institutions of higher education and the capital proceeds from them constitute a special 
fund. 

Home Loan Fund and Home Loan Guarantee Fund. In 1919 s the legislature pro¬ 
vided for two other funds under the Commissioners of the Land Office, both of which 
have since been abolished, but to a certain extent remain in the adnr'ni -trative picture. 
A Home Loan Fund was created in 1919 by an appropriation of $250,000 from the gen¬ 
eral revenues of the state to permit the making of certain second mortgages for farm 
homes as defined in the Act. In 1931 4 this fund was ordered dissolved and its assets, 
as they are converted into cash, are to be transferred to the Permanent School Fund. 
The Home Loan Guarantee Fund, established by the same Act, wag made up of un¬ 
claimed express and freight refunds then in the hands of the Oklahoma Corporation 
Commission. It was to be used to guarantee the payment of the second mortgage 
notes issued under thef Home Loan Fund. In 1925 it was dissolved and its assets trans¬ 
ferred to the School Fund. 

Receipts from Oil and Gas Resources. Prior to March 30, 1917, receipts from oil 
and gas resourcesl in land owned by the Common School Fund were regarded as revenue 
and were distributed to the School Districts. The legislature then provided that these 
receipts should be regarded as capital and be added to the Permanent School Fund. 

J Laws, 1913. Chap. 34 

Taws, 1913, Chap. 219, Art. VII, Sec. 10. 

8 Laws 1919, Chap. 194. 

<Chap. 28. 



ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


281 


Tlie Trust Funds Enumerated. Under the law, as above outlined, the Commission¬ 
ers of the Land Office have the following property t.ruslt funds on their books: 

1. The Common School Fund 

a. The Common School Fund 

b. The Common School Idemnity Fund 

c. The Home Loan Fund in process of dissolution 

2. State Educational Institution Fund 

a. The State Institutional Fund 

b. The Greer 13 Fund 

3. University of Oklahoma Fund 

4. University Preparatory School Fund 

5. Agricultural and Mechanical College Fund 

6. Teachers Normal College Fund 

7. Colored Agricultural and Normal University Fund 

8. Public Building Fund 

9. Union Graded or Consolidated Fund 

This list does pot includd the various revenue trust funds nor the administrative 
trust funds that are incidental to the operation of the Land Department. 

OPERATIONS 

State Farm Leans. The primary investment for the property trust funds is farm 
mortgages. From statehood to 1933 fife law provided few restrictions on the authority 
of the Commissioners of the Land Office in making loans on good and improved farm 
lands, except the constitutional provision that the loan should not exceed 50 per cent 
of the reasonable valuation of the lands without improvements, and a statutory pro¬ 
vision that: the, rate of interest should not exceed 5 per cent. 1 There were, however, 
several restrictions that applied to loans made from th)e State Educational Institution, 
Lands and the New College Lands ; 2 * but, since these restrictions applied only to loans 
from these two funds, the Commissioneirs were free to make loans from the other funds 
without regard to these restrictions. 

In 1933 the legislature adopted the policy of drastically restricting the authority 
to invest in farm mortgages. The law reads, in part, as follows :* 

Section 5630. Investments of the Public funds in farm mortgages shall be made un¬ 
der the following rules and regulations : 

(a) Such investments shall be made in first mortgages upon good and improved farm 
land within the State of Oklahoma which the borrower owns, operates or manages and holds 
as his homestead, or which the borrower owns and uses for agricultural or grazing purposes, 
the product from which constitutes his chief source of income. 

Provided further, that no loan can be made in any instance to a non-resident of the 
State of Oklahoma, or to any person who does not use the land held by him for agricultural 
or grazing purposes, and who does not depend upon the income upon the land so offered as 
security for supporting himself and family, and the cash value of which, disregarding all im¬ 
provements, is at least double the amount of the loan, and the fair rental value of which is 
equal to the annual payments to be made by the borrower, and not to exceed four thou¬ 
sand ($4,000.00) dollars shall be loaned to any individual (or family). Provided that loans 
heretofore made in excess of $5,000.00 that have become due or may hereafter become due, 
the Commissioners of the Land Office may extend such loans on the same terms upon which 
said loans were made. 

(c) No loan shall be made upon a tract of land of less than twenty (20) acres and in 
no case shall more than thirty ($30 00) dollars per acre be loaned regardless of value. 

In another act. 4 it was farther provided that “every applicant for a loan from 
the funds held by the: Commissioners of the Land Office shall have continuously owned 
the fee title to, and actually used by himself for agricultural purposes, upon which 
the loan is desired, at least one year prior to the date cf such application.’' This 
provision, it will be noted, prevents thel Commissioners from lending an applicant money 


’Stat. 1931, Sec. 5458. 

2 Stat. 1931. Sec. 5630. 

s Laws ; 1933. Chap. 91, Sec. 9. 

'Laws, 1933, Chap. 187, Sec. 1. 



282 ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 

• 

to purchase a farm with that farm itself as security for the loan. It virtually takes 
them out of the field of supplying 1 funds for farm purchases. All the restrictions, taken 
together, mean that the Commissioners; in the future cannot do much new farm loan 
business. 

Appraisals for Loans. Prior to 1933 the legislature appears to have devoted little 
attention to appraisals of land offered as security for farm loans. In 1933 it passed 
t|wo laws on this subject. 1 

The first act makes it a felony for any appraiser or other employee of the Com¬ 
mission to receive a commission, take property or accept a bribe for the recommenda¬ 
tion of a loan, or to “willfully place a false estimate of value 1 upon property offered . . . 
as security for a loan, with the intent to defraud the state.” It likewise makes it 
a felony for any person to attempt thus to influence the action of any appraiser of 
other employee. The law further makes it mandatory for employees to report efforts 
at such corruption and for the Commissioners to discharge any employee who fails 
so to report. Punishment is also provided for embezzlement and for destroying, alter¬ 
ing, forging records, and so on. 

The second act requires each applicant for a loan to submit three appraisements 
of the land offered as security, each of which shall be made by a qualified freeholder 
who shall be a resident of the county wherein the land is situated for at least three 
years prior to the time his appraisement is made. Each; freeholder must have person¬ 
ally inspected the land not more than 30 days prior to the filing of the application 
and must make affidavit that the facts stated in his appraisement are true. 

The Land Commission appraisers are prohibited from appraising the lands before 
the application with the fees has been received anid filed. He then must “personally 
inspect and go over each and every subdivision of every tract” and “shall not at ariy 
time disclose to the applicant his valuation placed upon the land until his! appraise¬ 
ment is filed with the Commissioners.” Upon request of the Commissioners or of the 
applicant for a loan, the tax assessor of the county in which the land is situated must 
(1) report the assessed vane of the land for each of the five years previous to the 
filing of the application and (2) give his opinion “as to whether the land is capable 
of earning the taxes and interest at 5% on a loan of an amount equal to 50% of its 
value, exclusive of improvements.” 

The Commissioners are required, before final approval of any loan, to have be¬ 
fore them the three appraisements required with the application, the statement of the 
tax assessor, and the appraisal of the Department appraiser. They are authorized 
to evaluate the evidence but “in no case shall more than 50% of the land as ap¬ 
praised by the appraiser of the Commissioners of the Land Office be leaned thereon.” 
False statements or affidavits are made perjury, punishable by imprisonment in the state 
penitentiary for a term of not to exceed one year. 

Loans to State Officials. In 1933 an amendment to Section 5630 of the code was 
adopted, 2 as follows: 

(p) No loan shall be made to any State Official, either legislative, executive or judicial, 
whether elective or appointive, during their term of office, or within one year thereafter, or 
during their candidacy for an elective office; provided, that this rule and regulation shall 
not affect existing loans or the renewal thereof, nor hereafter to loans made to persons eligible 
therefor and who are elected after procuring said loan. 

In 1933 a further act was passed 3 providing that “in transactions where state 
officers and/or state employees; are delinquent on obligations arising out of a loan of 
Trust Funds under the control and management of the Commissioners . . . the Commis¬ 
sioners . . . shall without first exhausting their remedy against mortgaged security, be 
entitled to proceed to require the State Auditor or other salary warrant issuing officer 
of the state,'to issue them warrants in an amount not greater than twenty-five per centum 
of the monthly salary as said Salary accrues” to the officer or employee who is in default. 


’Laws, 1933, Chaps. 186 and 187. 

Taiws, 1933, Chap. 91, Sec. 9. 

3 Laws, 1933, Chap. 188, pp. 411-13. 



ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


283 


The Act then prescribes in some detail the procedure which shall be followed in 
making these collections and in providing for an appeal. 

Collections and Disbursements. The 1933 legislature also passed a detailed la'vv 1 
establishing a system of collection and disbursement by the Commissioners, authoriz¬ 
ing the State Examiner and Inspector to prescribe the forms and methods of keeping 
certain records, authorizing the employment of an auditor, making an appropriation for 
iiis salary and necessary supplies and equipment; providing for strict compliance with 
the Act, etc. The Act itself should be consulted for details. 

Extension of Time on Payments Due. Because of the financial depression, the 
1933 session of the legislature passed two joint resolutions extending the time of pay¬ 
ment of obligations due the Land Commissioners. The first 2 applied to the sums due 
on purchase certificates and rentals upon preference, rights leases which had accrued 
or become due after January 1, 1929. It extended the time of payment to July, 1934, 
and pennitted the Governor to extend them further up to July, 1935. If the sums 
due with interest at the regular rate of 5 per cent are paid within the extended time, 
all other penalties and interests are cancelled. The second resolution 3 empowers the 
Commissioners to extend the payments due on leans “now due and delinquent or 
may hereafter become due and delinquent, at the constitutional rate of five per centum 
per annum from the original maturity or due date of said loans.” The Commission 
may extend them in its discretion for two years from the passage( of the Act (April 
5, 1933). The resolution relieves the delinquent of the additional 5 per cent penalty 
for the period of the extension. 


FINANCIAL CONDITION 

Apparently the best available data regarding the finances of the Land Department 
are contained in an audit recently prepared by Mr. Gilbert Fraser, the new auditor 
of the Commissioners of the Land Office, assisted by a group of employees supplied by 
the Federal Emergency Relief Administration. His report constitutes what is be¬ 
lieved to be the most thorough going audit ever made of this department. According 
to his findings, the financial condition of the Commissioners of the Land Office, as of 
June 30 1934, taking into account all of the funds and accounts administered by them, 
may be summarized as follows: 


Assets 


Amount 


Percentage of 
Total Assets 


Farm loans _$31,127,954.06 

Land sales installment contracts receivable _ 6,254,992.54 

Lands (unsold) _._—___ 10,480,618.35 

Deficiency judgments (principal only) _ 351,563.68 

Shortage in cash turned in for credit and special depositors _ 13,050.38 

Investments in state and school district bonds and warrants_ 720,250.00 

Cash in hands of cashier ___ 3,553,140.20 


59.29 

11.91 

19.97 

.67 

.02 

1.37 

6.77 


Total Assets 


$52,501,569.21 


100.00 


Liabilities 


Permanent trust funds, the income from which is to be used to 

support and .maintain the schools - 

Net undistributed assets available for public building purpose_ 

Net undistributed assets of Home Loan Fund available for trans¬ 
fer to the Common School Fund (permanent) _ 

Net undistributed revenue available for support and maintenance 

of schools _ 

Net undistributed fees earned for transmittal to the State Treasury 

and Revolving Fund _ 

Due to borrowers on incomplete loans _ 

Reserved for refund of special deposits --- 

Unapnortioned bank interest—reserved for apportionment_ 

Unclaimed special deposits, likely available for distribution to 

school revenue _ 

Suspense gains (transferable to permanent trust funds when real¬ 
ized) _ 

Total Liabilities --- 


$50,002,266.47 

95.24 

. 2,176,566.46 

4.18 

118,413.29 

.23 

73,169.93 

.12 

22,701.25 

.04 

6,154.26 

.01 

47,720.79 

.09 

24,808,81 

.04 

12,007.97 

.02 

17,759.98 

.03 

.$52,501,569.21 

100.00 


■Laws, 1933, Chap. 189. pp. 413-19. 

■Laws, 1933. Chap. 170 

3 Laws, 1933, Chap. 172. 





































284 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


The valuation of the “lands unsold” in the balance sheet above is based on an 
appraisal made by the appraisers of the Land Department in 1932. Auditor Fraser 
had to use this valuation in his report because it is the only one available, yet he does 
not regard it as at all satisfactory. If the appraisal of land under the Land Depart¬ 
ment is ever put on a more scientific and satisfactory basis the lands should be 
reappraised; and new appraisals should be made from time to time as conditions 
change. 

In this connection it should be pointed 1 out that thje records of lands granted the 
state as maintained by the Land Department have never been reconciled with the 
records of the United States Department of the Interior. Mr. Fraser attempted to 
make this reconciliation in the course of his audit and found a discrepancy amounting 
to 40,323 acres. Mr. H. G. Humphreys, C. P. A. of Oklahoma, in a manuscript report 
on the Land Department, says: “The land acquired at Statehood is stated in the 
published figures at 3,177,480 acres. The records (of the Land Department) are said 
to show only 3,141.043 acres, whereof 640 acres were acquired in August, 1933.” Mr. 
Fraser recommends, very wisely it seems, that the state should, at the earliest possible 
moment, seek to reconcile the figures by sending an auditor to Washington to compare 
in detail the Oklahoma records with the Interior Department records. Of course. 
40,323 acres constitute only a tiny fraction of more than three million acres; but if 
any of the acreage in question happens to be oil or mineral land, the discrepancies may 
be serious. 


as follows: 


S+atus 


Delinquent: 

vvuh Li 
Other _ 


Total _$31,127,954.06 


School Funds—Permanent: 


Public Building Funds: 

Granted lands, at 1932 appraised values 


of June 30, 

1934, is reported by 

Mr. Fraser 

Total 

First 

Mortgage 

Second 

Mortgage 

.$17,501,773.25 

$17,466,056.91 

$35,716.34 

- 4,906,765.65 

. 8,719,415.16 

4,875,909.33 

8,719,415.16 

30,856.32 

$31,127,954.06 

$31,061,381.40 

$66,572.66 

Unsold” is as 

follows; 



Amount 

Percentage 
of Total 

sales 

_$ 7,900,735.14 

1,789,723.21 

75.38 

17.08 


.. _$ 9,690,458.35 

92.46 


790,160.00 

7.54 


,$10,480,618.35 

100.00 


The following statement from Mr. Fraser’s report gives the: 


Net Worth—or Fund Balances: 

School Funds—Permanent, the income from which is to be used to support 

and .maintain the schools __$50,002,266.47 

Home Loan Funds, which according to Article Y, Chapter 28 of the 1931 Session 

Laws, is to be added to the Common School Fund—Permanent, as realized_ 118,413.29 

Public Building Funds, available for public building purposes, as realized___ 2,176,566.46 

School Funds—Revenue available for distribution for the support and main¬ 
tenance of the schools __ 73,169.93 

Interest earned, but undistributed __._ 24,808.81 

Fees earned but undistributed, available for transfer to State Treasurer for 

current expense purposes ___:_ 22,701.25 


Total Fund Balances _$52,417,926.21 


Tlio cash transactions of the Commissioners of the Land Office from statehood to 
June 30, 1934, are briefly summarized by Mr. Fraser as follows; 


Balance taken over from Territorial Board _._$ 320,373.31 

Receipts since statehood __—___ 169,540.221.39 

Total Receipts --$169,860,594.70 

Disbursements since statehood _ 166.307,454.50 

Balance June 30, 1934 -$ 3,553,140.20 






















































ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


285 


This balance is represented by: 


On deposit with Grate Treasurer _$3,508,213.78 

Cash in bank—Unapportioned bank interest _~_’ 24,808.81 

Total with State Treasurer _$3,533,022.59 


Mr. Fraser gives the following summary of application of funds for the period front 
statehood to June 30, 1934, all funds: 

Derived from 

Lands acquired through congressional grants _ 

Congressional appropriation—cash _ 

Five per .cent U. S. homestead land sales _ 

Oil and gas—all sources _ 

Forfeitures from land sales contracts _ 

Easements, rights-of-way, improvements, timber, sand, gravel, etc. _. 

Condemnations and escheats _ 

Gains realized from disposition of assets _ 

Legislative appropriations _ 

Interest received ___ 

Agricultural rentals _ 

Fees earned _ 

Miscellaneous _ 

Total Funds Provided _ 

Accounted for through: 

Apportionments for support of schools _ 

Transmittals to State Treasurer for: 

Public building purposes _ 

Current expense purposes _1_ 

Expenses _ 

Losses _—_ 

Miscellaneous _ 

Balances _ 


Interest Received. Interest receipts from s 
analyzed as accruing from the following sources; 

Interest on 

Farm loans _ 

Land sales installment contracts receivable_ — _ 

Investments in bonds and warrants _ 

Daily cash balances_ 

U. S. Government on $5,000,000 appropriation _ 

Miscellaneous ____ 


Amount 

Percentage 

.$ 36,294,786.38 

34.73 

. 5,000,000.06 

4.79 

66,164.20 

.06 

. 14,257,594.50 

13.65 

363,324.75 

.34 

138,873.12 

.13 

48,660.02 

.05 

11,294.25 

.01 

505,398.83 

.50 

. 36.294,727.60 

34.73 

. 10,479,649.16 

10.02 

990,121.14 

.94 

53,535.68 

.05 

.$104,504,129.63 

100.00 

.$ 41,988,529.76 

40.19 

8,746,499.20 

8.37 

842,395.28 

.80 

369,686.33 

.36 

4,376.41 

_ 

175,023.28 

.16 

. 52,377,619.37 

50.12 

$104,504,129.63 

100.00 

d to June 30, 

1934, may be 


Percentage 

Amount 

of Total 

.-$18,718,194.80 

51.58 

14,359,056.81 

39,56 

. 1,937,337.32 

5.34 

1,051,719.06 

2.90 

225,409.84 

.62 

3,(109.77 

— 

. $36,294,727.60 

10.0.00 


ACTIVITIES AND ORGANIZATION 

Activities. The .activities of the Commissioners of the Land Office fall under five 
main heads: 

1. Leasing and selling agricultural land 

2. Leasing oil and gas lands 

3. Making loans on agricultural lands 

4. Making other investments in accordance with law 

5. Distributing the real revenue of the various property trusts in accordance with law 

Obviously, the administration of such activities involves! an enormous amount of 
collecting, accounting, and bookkeeping. In fact, the statement has been made that 
80 per cent of the activities of the department are in the general field of accounting. 
In this connection, it should be remembered that in the administration of such an or¬ 
ganization it is njecessary to collect in advance deposits to cover feesi and to account 
for the money so deposited, paying such part of it as is subsequently earned into the 
revolving fund and returning such part of it as is not earned to the depositor. Similarly, 
when improved land that lias, been leased is sold to seme person other than the lessee, 
It is necessary to collect from the purchaser the amount at which the improvements 
are appraised and to pay this sum over to the lessee. Guarantee deposits are also 





























































286 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


required of persons who bid on oil leases. The number of active individual accounts 
in the department is in the neighborhood of 26,000. 

A very considerable amount of legal work is also involved, in such a business. 
Special mention should be made of (1) examining the title to property offered as 
security for a loan, (2) conducting foreclosure proceedings Jvvhen leans are in default, 
and (3) securing and collecting judgments on unpaid notes. 

Appraisal of property is a third great branch of the work. It is required not 
only in making farm loans, but in all other transactions involving land. 

Organization. The state Constitution vests the powers and duties incidental to the 
administration of the school land in an ex-officio board of five, consisting, to repeat, of 
the Governor, Secretary of State, Auditor, Superintendent of Public Instruction, and 
the President of the Board of Agriculture. All are elected officials, the first four ac¬ 
cording to the Constitution, and the fifth, the President of the Board of Agriculture, 
by legislative action. Practically all the statutory legislation relating to general powers 
and duties names the Commissioners as the responsible officials. 

In practice, however, the Commissioners resemble rather closely a board of di¬ 
rectors of a bank, trust company, or building and loan association. They generally 
meet about once a week for a few hours (a) to pass upon and decide upon any 
broad matters of policy that may arise and (b) to pass upon the myriad of detail 
presented to them by their secretary. There is, however, one noteworthy difference 
between the Commissioners! and the board! of directors of a private corporation The 
private board generally selects a chief executive officer and entrusts to him the ap¬ 
pointment, removal, and discipline of all subordinate personnel. The Commissioners 
themselves retain all appointing and removal power. As a matter of courtesy, the 
Governor names the secretary. Apparently, the other positions are apportioned among 
the five Commissioners and each is by courtesy permitted to fill his share of the po¬ 
sitions. Under ordinary circumstances, the board as such does not select the appointees; 
it approves the appointment of the candidates that the individual Commissioners nom¬ 
inate to the positions that are their’s by courtesy. 

Legally, the secretary of the Commission has few, if any, clearly defined duties 
and responsibilities!. His duties are such as the Commissioners delegate to him. As 
a matter jof fact, he is the chief executive officer; but, as has just been said, he does 
not select his own staff, which means of course that he has very slight disciplinary au¬ 
thority over the employees!. In practice, he has to get along with such staff as is 
given to him. He may have to keep employees that he does not want, and he may 
even lose employees whom he would like to keep. Since the position of secretary is, 
by courtesy, recognized as the Governor’s patronage, it follows that the secretary 
changes frequently and that new executive officers generally come from outside the 
staff of the Commission. Since statehood, the average term of secretaries has been 
about 2% years. The following tabular statement gives the names and terms of the 
secretaries: 


Name of Secretary 

Marr, L. C. _ 

Cassidy, Ed 0. _ 

Stone, S. W- _ 

Williams, Jno. R. _ 

Smith, G. A. _ 

McKinney, A. M. _ 

Shaw, A. S. J. - 

Knie, Robt. E._ 

Durant, W. A. _ 

Hart, Walter L. _ 

Beckett, A. S. _ 

Carpenter, J. L. _ 

Larson, Jess_ 


Term began Term ended 


Month 

Year 

(Month 

Year 

Nov. 

1907 

Dec. 

1908 

Jan. 

1909 

Aug. 

1910 

Aug. 

1910 

Feb. 

1911 

Feb. 

1911 

Jan. 

1915 

Jan. 

1915 

May 

1917 

May 

1917 

Feb. 

1919 

Feb. 

1919 

Jan. 

1923 

Jan. 

1923 

Dec. 

1923 

Dec. 

1923 

June 

1929 

June 

1929 

Jan. 

1931 

Jan. 

1931 

May 

1933 

May 

1933 

Jan. 

1935 

Feb. 

1935 




According to the statutes, 1 the general overhead office consists of the secretary at 
$5,000, an assistant secretary at $3,000, a law and executive clerk at $3,600, an assist- 


Stat. 1931, Sec. 3499. 



















ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


287. 


ant law and executive clerk at $2,400, a cashier at $1,800, a record clerk at $1,500, and 
an assistant cashier at $1,500. 

Under the general overhead office arei three divisions: (1) Lease and sales, (2) 
farm loan, and (3) oil and gas. 

The statute provides for the lease and sales division a chief clerk at $2,500, a 
bookkeeper (lease), two bookkeepers, a transfer clerk, and four stenographer-clerks, 
each at $1,500. 

For the farm loan division, the positions are chief clerk, $3,600; two title ex¬ 
aminers, $3,600 each; tfwo assistant title examiners, $2,400; mortgage clerk, $1,800; 
bookkeeper $1,800; two bookkeepers, $1,500 each; filing clerk, $1,500; seven district 
land appraisers, $3,000 each; and six stenographic clerks, $1,500 each. 

For the appraisal work, the Commissioners are required to divide the state into 
seven districts; and each district appraiser is required to reside as nearly as practi¬ 
cable in the center of his district. Each inspector must be “a freeholder and practical 
farmer or a farm loan inspector who shall have had at least five years’ experience as 
a fanner or a farm loan inspector, and shall be acquainted with land values.” Each 
appraiser must own, maintain, and use a car. The state pays for oil and gas and 
allows $25.00 per month for depreciation. 

The statute provides for the oil and gas division an oil and gas agent at $3,000, 
a bookkeeper at $1,500, and a stenographic clerk at $1,500. 

The new Accounting Act for the Commission, 1 provides an auditor at a salary' of 
not to exceed $2,400 who must be a competent, qualified, and experienced accountant, 
and must have had special training and experience in either county or state auditing 
or thoroughly familiar with the system of accounting established in the state depart¬ 
ments. 


COMMENTS AND RECOMMENDATIONS 

Appraisals. The success or failure of a mortgage loan agency depends funda¬ 
mentally on its appraisals. If they are conservatively low, the organization will be 
safe; provided the employees are honest and efficient and the accounting and auditing 
are well done, and dishonesty of the employees in the office work can be insured against 
with bonding companies. On the other hand, if the land is over-appraised, the honesty 
and ab.lity of the employees in the central office will not help very much and the ac¬ 
counting and auditing will show a soundness that may, in fact, be entirely fictitious. 
It is moreover extremely difficult to collect from bondsmen on the ground of over¬ 
appraisals. Appraisals involve the exercise of judgment and it is almost impossible 
to distinguish between an innocent error in judgment and an intentional and deliberate 
over-valuation made from improper motives. It must be borne in mind, too, that one 

way to get rid of a piece of property isi to get a loan on it for more than it is really 

worth and then let the holder of the mortgage take it over by foreclosure 

The appraisal system of the Land Department was apparently materially strength¬ 
ened by the legislation of 1933, but it could still be markedly improved in several ways, 
eachl of which deserves brief discussion. 

At present the appraisals are made by the district appraiser and his work is 

not thoroughly and systematically checked. The other evidence of value at present 

called for 'is the tax assessment for the past five years and the sworn appraisal of 
three residents of the district. It would seem that the central office should have at 
least one reviewer of appraisals, who would nor only review appraisals in the office, 
but from time to time make complete independent reappraisal of property already 
appraised by the district man. The district man should know every time he makes 
an appraisal that another appraiser sent out by the central office may again appraise 
the property, and that if any serious over-valuation is found he is likely to lose his 
position. 

The wisdom of the district system and of having appraisers reside in the center 
of their districts is open to serious question, especially in a state which makes its ap- 


1 Laws, 1933. Chap. 189, Sec. 10. 



288 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


pointments to its administrative service on a patronage' basis. Under such a system 
the appraiser is likely to be in politics and to have a desire to please his neighbors: 
and he would have to be possessed of unusual moral fibre to resist the political in¬ 
fluence of those persons to whom he o*wes his position. Political influence may be a 
more important factor than the bribery and corruption now made a penitentiary offense 
by the 1933 Act. 

The law should be amended to do away with the district system; the question of which 
appraiser is to act in a given area should be decided in each case by the central office; and the 
central office should deliberately shift appraisers from district to district, rarely sending an ap¬ 
praiser to the district in which he has his political connections. 

The selection of appraisers should be taken out of politics and be placed on a competitive 
merit basis; and the appraisers should) hold office during good behavior, subject to removal only 
for cause. They should be removed very promptly for over-valuation; but they should be 
adequately protected from political pressure designed to make them optimistic regarding future 
land values and the production value of property. 

The question must be raised as to whether “a freeholder and practical farmer” 
makes the best appraiser at present available to the state. The state now has an 
adequate supply of graduates of the Agricultural and Mechanical College whose scien¬ 
tific and technical training in agriculture, farm management, farm accounting, soils 
and farm engineering would enable them to put appraisals on a scientific basis- They 
could be secured at the salaries now paid appraisers, if the positions were taken out 
of politics and put on a merit basis with reasonable permanence of tenure 

The law should be amended to require that the appraisers be graduates of a standard 
school of agriculture and engineering and qualified in agronomy, soils, farm management, farm 
accounting and farm engineering. The chief appraiser or reviewer of appraisers shoxdd be 
an outstanding man in this general field. 

Help for Clients in Difficulty. The state should give serious consideration to the 
Question of whether the Land Department should not have on its staff at least one 
man with education, training, and experience similar to th|at possessed by a county 
agent. In some instances, clients of the Land Department are falling behind in pay¬ 
ments because of poor farm management. In the kind of business the Department is 
doing, it has a real stake in the success of its clients, for the- success of the client is 
the best security for the payments due the state. Taking the client’s land away from 
him is a last resort and it means difficulty for the client and difficulty for the state. 
The duty of the technically trained agricultural man here suggested would be to help 
the clients in establishing contacts with the county agents and others in the state 
service who are able to help them. Such an officer would also' be of value to the Com¬ 
missioners in many ways as an advisory officer. He should, of course, be selected 
competitively, solely on the ground of his qualifications, and he should be a permanent 
employee not changing with changes of administration. 

Accounting and Auditing. Unfortunately, when the legislature passed the new ac¬ 
counting law for the Land Department in 1933, it appropriated only $250 for equip¬ 
ment, books, and printing. The Department is at present using antiquated hand methods 
of bookkeeping that not only are expensive, but entirely fail to give adequate account¬ 
ing control. 

The state should appropriate a sufficient sum to permit the purchase of suitable equipment 
for a modern system of accounting in the Land Department. An appropriation of not to ex¬ 
ceed $15,000 zvould probably meet the needs. 

In the past, accounting lias been done in each of the three divisions of the De¬ 
partment in a way that; was believed to meet the. needs of that division. To get at the 
condition of the Department as a phole and to secure real accounting control, it was 
necessary to make re-arrangements of the figures secured from the divisional accounts. 
Under a modern system, all this extra work could be eliminated and one set of ac¬ 
counts could be made to serve the purpose. 




ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


289 


The position of auditor created by the Act of 1933 should be changed to that of comp¬ 
troller; the comptroller should be placed in charge of all the accounting zvork of the Depart¬ 
ment; the three operating divisions (lease and sales, farm loan, and oil and gas ) shoidd keep 
only such books as the comptroller may direct; the bookkeepers nozv employed in these divisions 
should be transferred, in so far as they are needed, to the comptroller’s office; all checks or 
warrants for the disbursement of funds should be countersigned by the comptroller; and a 
verified record of all receipts of whatsoever nature should pass through his office. 

There should not be a single financial transaction of any kind that doe*s not pass 
through the comptroller’s office, so that it can be duly recorded in detail on the gen¬ 
eral books of the Department. The accounts of the comptroller’s office should be 
audited| annually by the state officer charged with the duty of auditing all state de¬ 
partments and institutions. The accounting law of 1983 1 should be amended, to provide 
that the comptroller shall be selected by open competitive examination, entitled to 
hold office during good, behavior, and removable only for cause. 

Quarters. r i he Commissioners of the Land Office are responsible for about 52 mil¬ 
lion dollars’ worth of property, the records off which are in the Land Department at 
the Capitol unprotected against fire. One hesitates to estimate the loss to the state 
if these records should be destroyed. 

Immediate action should be taken to safeguard the records of the Land Office. 

The Secretary of the Commission. The office of the secretary should be taken en¬ 
tirely out of politics. A compeitent, honest administrator) should be obtained through 
open competition; and the person so selected should] hold office during good behjavior. 
This Department cannot be properly administered under a system that has resulted 
in a change of the chief executive officer on the average; of 2*4 years. The people of 
the state are well aware of the recurring scandals that .have arisen in connection with 
thjc Land Department. In some instances; the amount of the defalcations have been 
recovered in whole or 'in part from the bonding companies; but at least one in¬ 
stance the records of thd Department were in such bad shape that the details of the 
transactions could not be determined within the time limits of the bonds. If it be 
assumed that the politically appointed secretaries were themselves all honest, the fact 
remains that it requires time for a new man to become familiar with the work. The 
only common sense way of administering such an enormous trust is to get a competent 
man and put him at the head of it and keep him there during good behavior. 

All subordinate employees of the Department should be appointed by the secretary and 
should be obtained in the first instance through open competitive examination. The secretary 
should have complete administrative authority over the personnel ivith pozver to remove em¬ 
ployees for inefficiency, incompetency, or irregularity. 

He should promptly suspend any employee on the first evidence of any irregularity; 
and he should not be required to give any consideration to the question of whose friend 
the particular employee happens to be. 

The Commissioners. For three reasons the existence of an ex-officio Board of Com¬ 
missioners is unfortunate. The first is that all members of the Board are busy men 
with other duties and responsibilities. They have little time to give to the details of 
the Hand Department. They must largely entrust the details to the secretary and act 
on his advice. They are hardly to be held responsible for the unfortunate things that 
have happened in the Department in the past. The second reason is that they are a 
changing body, dominated by the Governor, who only serves for four years. The 
third is that every one of them is an elected officer; and if 'any patronage is available 
an elective officer more or lees has to use it. It will be exceedingly hard to get the 
necessary permanency of tenure for the secretary and the rest of the personnel, so 
long as the legal power over the Department is vested in a! political hoard. A board 
of directors is, however, necessary for an agency such as the Land Department, be¬ 
cause the work of the secretary and his subordinates should be subject to review and 
some matters of broad policy have to be decided. 

’Chap. 1S9, Sec. 10. 








290 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


Section 32 of Article VI of the Constitution should be amended by eliminating the ex- 
officio board and substituting for it a board of three with staggered terms of twelve years , 
appointment to be made by the Governor. 

The amendment might well specify that power of appointing and removing the 
subordinate personnel shall be vested in the Secretary, subject to a merit system of 
selection. The members of the Board would be part-time, receiving their expenses and 
a small per diem. 

Foreclosures and Judgments. The legislature of the state is the proper agency to 
determine whether, as a matter of policy, the debtors of the Land Department shall 
be given an extension of time for the payment of their debts and whether the legal 
and contracted penalties for defaults) shall be waived. The wisdom of the legislature 
in taking such action is not here questioned. 

Grave doubt, howwever, ekists whether a board of trustees dealing with the people’s 
money, declared by the Constitution a sacred trust, has any right to let loans run on 
in default for any considerable period of time. The records of the Land Department 
disclose some loans in default for as much as ten years with no action taken. In this 
connection it should be remembered tnat in ten years the accrued interest due will 
amount to more than half the face of the note. The primary duty of trustees is to 
protect the interests of the state and its people and not the interests of a particular 
borrower or purchaser who happens at the moment to be ini difficulty. Experience in¬ 
dicates, too, that some) people whp can pay will not do it until forced. A question may 
also* be raised as to why some mortgages are foreclosed whereas others are permitted 
to drag on for years. The legislature might well consider making foreclosure man¬ 
datory,, aftqjr a loan has been in default for a given length of time, unless the legis¬ 
lature declares a moratorium which applies equally to all clients of the Department. 

The legislature should supply the impart men t with a sufficient legal staff to put 
through foreclosures promptly and to make every effort to collect on judgments. Every 
client should feel that an obligation to the Land Department is a sacred obligation 
that must be meti and that the state will see that it is met. The bulk of the revedue 
from these funds is for thie benefit of the youth of Oklahoma. The state is under moral 
obligation) to* make good the losses of the trust funds. 

When a mortgage is foreclosed, the land secured by foreclosure should be immediately re¬ 
appraised at its present value at the time of the foreclosure, and should not be carried on 
the books at any value higher than that appraisement. 

If the pew appraisement is less than the face of the loan, plus accrued interest, 
plus charges, the state has lost money from its trust funds) and the books should re¬ 
veal that fact. Later on, if land values come back and the state sells the land for 
more than' the appraisal after foreclosure, the state has made some money. Unless the 
state does have the land reappraised at foreclosure, it will carry it on. its books at 
what the land has cost it, and thus some serious losses may lie hidden. Every effoi't 
should be made to make the books show a real condition of the sacred trust. 

Investments. The legislature and the people should give serious attention to the 
question of how the trust funds should in the future) be invested. The 193?, legislature, 
as has been explained, has placed such restrictions around investments in farm loaps 
that that avenue is now all but closed. The state has no bonds that the Commissioners 
may purchase. The county bonds would have to be investigated with great care. Con¬ 
ceivably, of course, a large) part of the uninvested cash might be put into United, States 
government bonds. Certainly, steps should be taken to reduce very greatly the amount 
of idle cash. 

The recent legislature by enacting Senate Joint Resolution No. 4, submitting a 
proposed constitutional amendment to the people, and S. B. No. 234, approved May 14, 
1935, took encouraging steps toward the reorganization of the Land Office and improve¬ 
ment of its administration. 


CHAPTER XVII 


COUNTY FINANCIAL ADMINISTRATION 

The present chapter will deal with the agencies, that control county financial ad¬ 
ministration, the operations and procedures involved in the collection, custody, and 
disbursement of public funds and in the accounting, auditing and reporting of rev¬ 
enues and expenditures. 

STATE AND LOCAL AGENCIES 

Since the county is an administrative subdivision of the state, attention must be} 
given to both state and local agencies. These may be listed as follows: 

State agencies: 

1. Legislature 

2. Court of Tax Review 

3. State Examiner and Inspector 

4. State Auditor 

5. State Treasurer 

6. Attorney General 

7. Depository Board 
Local agencies: 

1. Board of County Commissioners 

2. County Excise Board 

3. County Treasurer 

4. County Clerk (Clerk’s Division) 

5. County Attorney 

6. School District Treasurers 

The State Legislature. Except for the provisions of the state Constitution, basic 
control over local financial operations is througli legislative^ enactment. In Oklahoma 
as in other states, the duty of the legislature to provide appropriate administrative 
machinery for the conduct of government raises a question as to how far its provisions 
should extend. The statutes now in force, besides providing for the selection, term 
and replacement of officers to carry on county functions, prescribes also their salaries, 
bonds, the selection and number of their deputies, and in elaborate detail, the pro¬ 
cedure! which each officer must follow in the conduct of his duties. Moreover, in an 
eedure to insure the proper use of public funds, a complicated system of internal checks 
and audits has been devised to operate among the various offices within) the county. 
TRe results are) (1) that county expenditures are largely mandatory, (2) that county 
officers have been allowed little discretionary power beyond deciding the amount to 
be spent on each of their enumerated functions, and (3) that financial control is 
divided among a number of different agencies. Rather than guaranteeing proper con¬ 
duct, therefore, the present system diffuses responsibility and assures that little can 
be done in cases of misconduct or unsatisfactory conduct. 

No curtailment of legislative power is suggested; but the legislature should delegate 
responsibility for administrative control to agencies Which are permanent and which 
have adequate facilities for research and planning. The legislature deals with gov¬ 
ernmental policies in terms of general law without attention to special or local needs. 
The’ possibilities! do not exist in the legislature for amplification of detail or for pro¬ 
viding for all local variations and contingencies. If local financial administration is to be 
provided on the one hand with the necessary amount of flexibility and cn the other 
with the proper system of control, the legislature must determine what state agency 
if any, should be responsible for developing the details of the local fiscal system and 
for the supervision of local finance. 1 

Court of Tax Review. The duties and selection of the three district judges who 
compose the court of tax review are discussed in that part of this report which deals 
with the revenue system. They hold hearings and render decisions in cases of pro¬ 
tested tax levies. Since protests can be entered as to the legality of any appropriation, 


1 On this point, see previous chapter on State Financial Administration. 



292 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


any apportionment of tax levies, or the calculations on which levies or apportionments 
are based, the Court of Tax Review acts as a final agency for budgetary control from 
whose decisions appeal must be taken to the Supreme Court. The establishment ci a 
judicial or quasi-judicial agency to review local budgetary operations means that the 
technical and procedural questions which arise in connection with the 77 county budgets 
are decided on their legal meins, m s^.te 01 tue oourt s existence since 1928, pro¬ 
cedure has not been standardized, and the number of levy protests has noti lessened. 
Protests are entered which affect nearly every county budget and many city, town, 
and school district budgettte every year. If the law were sampler and if it left re¬ 
sponsibility for procedure to administrative .agencies, technical points could not be 
treated as legal issues in the case of individual county budgets; and a special tribunal 
in matters of finance would be unnecessary. 

State Examiner and Inspector. The duties of the State Examiner and Inspector 
•with respect to local finance have been described in a previous chapter. His activities 
hfave been successful in obtaining rapid adoption of uniform reporting forms for the 
counties, municipalities and school districts. These reports furnish a mass of detailed 
information; but they are not used as thei basis for consolidated financial statements 
or statistical reports, and their complexity is scarcely justified by the demand for such 
information. 

The biennial audit, for which a levy of not to exceed 1/10 mill is now mandatory in 
all counties, 1 was made use of during 1933-34 by 15 counties at an average cost) of $1,135 
per county, and 41 counties voted appropriations for audit during the current year 
at an average of $1,322 per county. If these figures are to be regarded as representa¬ 
tive, they indicate that the annual cost of thle biennial audit will be about $600 per 
county. This is an excessive cost which is made necessary in part by the diffusion 
of financial responsibility within the county and in part by the costly and cumbersome 
system of accounting now prescribed for all counties. If more time were devoted by 
the state examiners to devising and installing accounting systems of internal check, 
the necessity for a detailed audit of all county officers would be lessened and the cost 
of audit w r ould be ,materially reduced. 

Attorney 'General. As ex-officio State Bond Commissioner, the Attorney General 
prescribes uniform forms and the method of procedure under the law for the issuance 
of “public securities or bonds,” including those issued by the counties. He also ex¬ 
amines into and passes on all securities so issued; and, when he certifies that a security 
is issued in accordance with thie prescribed methods of procedure, the security is in¬ 
contestable 'in any court of the state after 30 days. 

State Auditor. Thje State Auditor must register local bonds when issued for 
certain purposes, as follows: (1) funding or refunding of outstanding indebtedness 
of counties, municipalities, and school districts; (2) public buildings cf counties; and 
(3) school district buildings and equipment. The purposle and usefulness of the regis¬ 
tration of these particular issues is not apparent either from the statutes or from the 
Auditor’s procedure. Recommendations regarding the Auditor’s place in the system 
o-f financial control have been made in a previous chapter. 

State Treasurer. Since the ad valorem tax is no longer levied for state purposes 
in Oklahoma, thle State Treasurer exercises no control over 1 local finances except as a 
member 1 of the State Depository Board. The relation which exists between the State 
Treasurer and county treasurer is for the transfer of collections and deposits. 

State Depository Board. Among the duties of the State Depository Board, whose 
organization and functions have been discussed in a previous chapter, are two which 
affect local finance. First, the Board fixes the uniform rate of interest to be paid by 
the depository banks on the average daily balances of all treasurers, including the 
county treasurers; and, second, they designate the state fiscal agency in New York to 
handle the financing of all bonds including county bonds. The fixing of the rate of 
interest to be paid by depository banks has caused difficulty in recent months by reason 


’Laws 1933, Chap. 40. 



ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


203 


of the fact that the minimum rate is fixed by statute at 2 per cent. Local banks have 
been unwilling to pay as much as 2 per cent and county treasurers have beep obliged 
to spend their inactive deposits to the state treasury. There, they draw nothing unless 
they are invested byl the State Treasurer. There is no reason why the legislature should 
fix a minimum rate of interest. The market rate of interest is determined by the 
operation of economic forces so that the legal minimum may be higher, as it is at present, 
than the rate which the banks can pay. The Depository Board, or any other agency 
exercising its functions, should have full responsibility for agreeing with the banks on 
a rate of interest which, under conditions current at the time, is acceptable to the 
state and its subdivisions. 

Board of County Coimanissioniers. Although the board of county commissioners is 
the chief executive authority of the county, its financial functions are limited by 
mandatory statutory provisions and are subject to review by the county excise board. 
Nevertheless, the county commissioners are charged with many duties with respect to 
local finance. They vote appropriations) for all items of the county budget on flip basis 
of estimates received from the several officers; act on all claims against the county 
for money when payment is not otherwise specifically provided; approve thei bond of 
the county treasurer within the limits provided by law; account iwith all county 
officers charged with receipt or disbursement of money of the county, with full power 
to investigate the accounts of county or district officers; examine the taxi account of 
the treasurer; keep a record of warrants issued and cancelled; let contracts for public 
work, except as provided under the highway laws; contract with the State Highway 
Department to guarantee funds for highway purposes; sell or lease unused lands be¬ 
longing to the county; and sell sinking fund securities at not less than par and ac¬ 
crued interest. 

Actually most of the detailed financial work in connection with accounting and 
auditing is done by the county clerk. Statutory tax limits, mandatory offices and 
salary scales, and review by the county excise board have left the commissioners little 
oppox-tunity to exercise discretion in financial matters. Their i*esponsibility to the 
voters, therefore, is almost exclusively for conducting ministerial functions in con¬ 
formity with legal requirements. Here, as elsewhere|, the legislature has undertaken] 
tasks which properly belong to executive officials and administrative agencies, with 
the result that details of organisation and procedure are as uniform as the functions 
themselves. 

Such standardization represents unnecessary extravagance. The administrative 
organization which serves the purposes of one county admirably may be wholly un¬ 
suited to the needs of a neighboring county. More discretion should be given local 
executives to determine their particular needs. The legislature has long since recog¬ 
nized this fact in the case of cities and towxxs. These iare noKv practically /free to de¬ 
termine their own type of management; and the law places in the officials locally 
selected, a large measure of responsibility for organization, procedure, and results. 
The county’s role a^ an administrative subdivision of the state does not preclude the 
possibilities of some choice being exercised locally regarding the type of management 
to be installed. It is true that less freedom can be exercised than in the case of cities 
and towns; for the functions to be undertaken by the county as well as the results 
to be expected must be determined to a considerable degree by state administrative 
agencies. Methods of achieving results, however, need not be uniformly parescribed; 
and in this field some opportunity should be provided by permissive legislation for 
the choice of types of responsible management to meet the particular needs of each 
of the various counties. 

County Excise Board!. Every county in the state has an excise board of three 
members. The membei's are the same in each case as those composing the county 
board of equalization. One is chosen by the State Tax Commission, one by the board 
of counity commissioners and one by the district judge of the judicial district in which 
tlxet county is located. Their tenure of office coincides with that of the county commis¬ 
sioners. They are compensated for th)eir services at the rate of $6.00 per day and 
the) number of days they may serve is graduated according to a classification of counties 


294 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


based on assessed valuation. The classes of counties, and the maximum number of 
days chargeable are provided as follows; 

1. Counties with an assessed value of $40,000,000 or less, 30 days maximum. 

2. Counties with an assessed value of over $40,000,000 and not more than $80,- 
000,000, 45 days maximum. 

3. Counties with an assessed value of more than $80,000,000, 75 days maximum. 
Since 1933 because of the widespread reductions in assessed values, there have 

been only] ifvvo classes of countiesi; those with less than $40,000,000 and those (Oklahoma 
and Tulsa) with) more than $80,000,000. 

The following table shows the total cost of the 77 excise boards and the average 
cost per county for the fiscal year 1933-34. 


Total Cost Average Cost 

75 counties _$37,260 $ 497 

Tulsa _ 1,260 1,260 

Oklahoma _ 1,260 1,260 


Total _$39,780 Average $ 517 


Thle functions of the excise board relate entirely to financial control. It holds 
meetings beginning the last Saturday in July to examine the budget estimates of 
the county and of all cities, towns and school districts with, th|b county; and, it has 
power to revise and correct estimates in any manner, except that if any are to be in¬ 
creased the fact must be advertised. After all revisions have been made, the board 
makesi separatel appropriations for each item of the budgets; and, after receiving the 
completed assessment roll from the county assessor, it computes the tax rates and 
levies the taxes for the county and all its subdivisions. Supplemental appropriations 
can be made by the excise board during the year on application from any county or 
municipality which can show unused amounts of appropriations made. In addition, 
the excise hoard exercises some control over debt administration through its authority 
to direct the county treasurer’s use of the county emergency investment fund. 

The 77 excise boards are costing about $40,000. In practice, they exercise little 
control over anything except the county budget; and in this! respect their work largely 
duplicates) that of the county commissioners. The duplication of actual work is not) 
so serious) as it) might at first appear; for the county clerk, as secretary to both boards, 
performs all the. detailed ‘work of preparing the budgets for approval and of computing 
rates and seeing that they are within the legal limits. Nevertheless, duplication con¬ 
tributes to diffusion of financial responsibility in the county and allows little oppor¬ 
tunity for the exercise of local discretion. Often too, the! clerk hires extra help to 
assist in preparation of the budget document, computation of levies and apportionments, 
and preparation of the annual financial statement. 

County Treasurer. The, county treasurer is a statutory officer elected for a two- 
year term; but, unlike other county officers, he cannot hold office for a longer period 
than, two terms in s/uccession. Vacancies in the office of treasurer are filled as in the 
case of other administrative officers by the board of county commissioners and the 
treasurer’s selection of deputies is subject to the commissioners’ approval. 

The duties of the county treasurer relate chiefly to the collection, custody and dis¬ 
bursement of public funds; but he has certain duties besides in relation to the custody 
and sale of property coming to the county. Specifically, he performs the following 
functions: (1) Collects taxes and special assessments for the county, cities, towns, 
and school districts; (2) collects such miscellaneous revenues including interest, fees 
and penalties as the law directs; (3) has custody of all funds of the county which 
are deposited with him; (4) makes all disbursements' for the county except those 
which are made by other officers from depository accounts kept by him; (5) invests 
the county sinking fund as provided by law; (6) manages the county emergency in¬ 
vestment fund as directed by the county excise board; (7) with the county clerk, 
makes a detailed financial report annually which is published; (8) balances his books 
and accounts with the county commissioners four times each year : (9) holds tax re¬ 
sales and distributes the proceeds to the school districts as provided by law; (10) 








ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


295 


issues certificates of redemption and property; (11) certifies abstracts of title to real 
estate as to the amount of unpaid taxes due and certifies tax titles affecting the prop¬ 
erty, for which he charges a fee; (12) insures public buildings at the direction of 
the county commissioners; (13) deposits with the State Treasurer all securities re¬ 
ceived by him to secure county deposits in depository banks; (14) forwards install¬ 
ments of principal and interest on county indebtedness to the fiscal agency in New 
York, as required by law, together with commissions due th© agency; (15) and, in at 
least one county, acts as/ treasurer of all independent school districts. 

Although the statutes give the treasurer little discretionary polwer, he can use his 
ministerial authority so as to exert considerable influence over the activities of the 
board' of county commissioners and other officers. For example), by refusing to register 
the warrants drawn by the county clerk, he can make it difficult for them to make 
expenditures which may be legally contested. Yet the function of pre-audit is not 
a major activity of the treasurer; nor is the responsibility for the issuance of war¬ 
rants exclusive with him. 

The duties of the treasurer are technical and require the services of an experienced 
accountant with some knowledge of investments. The present practice of electing 
the treasurer for a two-year term and allowing him to succeed himself but once seems 
absurd. It places a premium on ignorance by making the cost of preparing for 
the job prohibitive; it results frequently in ill-advised and irregular practices and in 
harmful neglect; and ,'it render^ continuity of procedure impossible. The treasurer 
should be appointed rather than elected. Financial control can be kept close to the 
people by having him appointed by the commissioners to serve without term, responsible 
to them for all his activities, and removable by them, but only for cause. 

The cost of the treasurers’ offices for each of the past four years is shobvn below 
fwith the yearly average and the amount appropriated for the current year: 

1930- 31 _,$715,674 

1931- 32 _ 640,047 

1932- 33 _ 559,493 

1933- 34 _ 567,224 

Yearly Average _(620,610) 

1934- 35 _ 595,150 

As in the case of the county clerk, the cost per county differs widely over the 
state. In 1933-34 it ranged from $3,268 in Adair to $51,307 in Oklahoma County. This 
variation is due partly to the differences in the treasurers’ salaries, partly to premiums 
on their bonds, partly to supplies and miscellaneous expenses, but, as in the case of 
the county clerk, chiefly to the cost of clerk hire. 

Three counties of different valuation classes are chosen for illustration; and they 
may be compared in the following) table, first as to total cost per county and second 
as to differences in the relative amounts spent for each purpose, for the fiscal year 
1933-34. 

Adair Noble Oklahoma State Average 


Treasurer’s Salary _$1,509 $1,650 $3,000 $2,002 

Premium on Bond_ 581 550 2,770 883 

Clerk Hire _ 600 1,815 38,231 3.084 

Supplies and Miscellaneous _ 587 1335 7.306 1.39X 


Total___$3,268 $5,350 $51,307 $7,367 


Treasurers take office) with the board of commissioners in July so that the salaries 
shown in the table just given are governed by the old law. The salaries called for? 
by the new law will total $129,160. They will be the same as those of the county 
clerk except in Seminole County where the treasurer’s salary is $3,000, exceeding the 
county clerk’s salary by $600. 

The treasurer is the most heavily bonded officer in the county; and the difficulty 
which treasurers had in making bond after the general elction of 1932 necessitated a 
joint resolution, of the legislature to extend the time for them to qualify. The mini¬ 
mum amount of the treasurer’s bond is $50,000. In most counties it isi $75,000 and 
























ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


296 

in tlie large counties it is .usually $100,000. It must be approved by the county com¬ 
missioners and they may require additional sureties if they think necessary. The 
commissioners may also require that the treasurer’s deputies be bonded and fix the 
amount of their bonds. The annual premium on the treasurer’s bond, which 'is paid by the 
county, is figured by the surety companies at present at the rate of $10 per $1,000. It 
does not seem possible that such a rate has been actually determined on the basis of the 
risk involved; but in any case the excuse for the rate charged lies in the system of select¬ 
ing the treasurer. The obvious means of correcting the present system have been sug¬ 
gested ; and by adopting such simple correctives' thie counties can save perhaps 50 pier 
cent of the annual premiums now paid, or an average of about $440 per county. 

Because of the variety of the treasurer’s duties and because fees are charged for 
only a minor part of them, there is no satisfactory measure of the volume of work 
handled by his office. 

County Clerk. All the duties of the county clerk except those which pertain to 
financial administration have been previously discussed. He performs the following 
functions in connection with financial administration; (1) Receives budget estimates 
from the other county officers and prepares the budget document; (2) assists in 
computing the apportionments and tax levies for the various municipalities and funds; 

(3) audits! all claims before presenting them to< the county commissioners for action; 

(4) keeps a check on all accounts of the treasurer; (5) registers all warrants Issued; 
(6) audits accounts of ail county officers; (7) collects fees for his services as prescribed 
by law and deposits them with the county treasurer; (8) causes the disbursement 
of certain moneys as provided by law by vouchers drawn on depository accounts with 
the treasurer; (9) cerlifies the annual financial statement and estimate of needs to the 
State Auditor for filing with the Court of Tax Review; and (10) with the county 
treasurer publishes an annual report of the financial operation of the county. In a 
previous chapter it is recommended that the division of the clerk’s office which per¬ 
forms these functions be abolished; and estimates are presented of the net savings 
which might result from the] reorganization of the clerk’s office. The purpose of that 
recommendation is to avoid the duplication of work which nofw results from requir¬ 
ing financial records to be kept by both treasurer and clerk, and to permit greater 
specialization in both the clerical and financial organization of the county. If that 
recommendation is followed, however, it will be necessary to make provision for the 
conduct of the function just enumerated which pegtain to the pi-eparation and ex¬ 
ecution of the budget, auditing, reporting and pub’ication of reports. 

Proposed County Controller. These are specialized duties for which there should 
be a qualified officer in charge. It is recommended that the legislature create the 
office of county controller for each county or for such groups of counties as may elect 
to cooperate for this purpose. He should be the ranking financial officer of the county 
appointed by the board of county commissioners to serve without term, and remov¬ 
able by them only for cause. The county controller would keep the county’s controlling 
accounts; would assemble all the information necessary to the approval of the 
county budget and all municipal and school district budgets; would assist the com¬ 
missioners in the execution! of the budgets and the management of the sinking funds; 
and would prepare all the financial statements for the county, the cities, towns, and 
school districts. His duties in these respects are discussed at greater length 1 , in a 
later section of this chapter. 

County Attorney. The Constitution requires that the county attorney, as well as 
the county clerk, certify that every “bond or evidence cf debt of any county, or bond 
of any township or any other political subdivision of any county' ... is issued pursuant 
to law, antd that said issue is within thie debt limit.” 1 

Conclusions and Recommendations. Relative to state supervision, it has been 
noted (1) that the legislature in the past has provided in too much detail for local 
financial procedure; (2) that state administrative agencies have been narrowly re¬ 
stricted in their supervisory powers by statutory provisions; and (3) that an attempt 


*Art X Sec. 29. 



ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


297 


is made to provide legal grounds on whichl to settle technical questions. In the dis¬ 
cussion of local financial organization, it was found (1) that no choice is provided for 
the form of management for county administration; (2) that local officers are given 
little discretionary po^vver; (3) that financial responsibility within the county is 

diffused; and (4) that financial control is divided among a number of agencies, 
both state and local, which are difficult to integrate. 

It is entirely within the power of the legislature to remove the causes of waste¬ 
ful expenditure and divide responsibility which inhere in thje present system of local 
financial administration. The framers of the Constitution were wise in providing no 
county offices which could not be changed by the legislature; and, in devising a sys¬ 
tem of financial administration which is adapted to the needs of Oklahoma, thje 
legislature possesses a degree of freedom not found in many states. Past legis¬ 
lation, by abolishing the township and centering local tax administration in the 
county, has pointed the way toward a system which will provide for adequate con¬ 
trol of local finance and will also grant the desired degree of local freedom in the 
choice of activities and form of management. 

Providing for optional forms of county management to meet the needs of par¬ 
ticular localitiesi has been recommended in the previous chapter on County Executive 
and Clerical Organization. The proposals which are offered in this chapter are intend¬ 
ed further to assist the legislature in revising the present organization to conform 
logically to the changes already made. 

A county controller’s office should be created for each county or group of neighboring 
counties, as the local electorates see fit. The controller should be directly responsible to the 
executive authority of the county and should prepare the budgets of the county, the cities, 
tozvns, and school districts, pre-audit claims on the county for money, and other functions related 
to internal expenditure control, manage the sinking funds of the county, cities, towns, and school 
districts, and direct the preparation of all financial statements and reports. 

Responsibility for local financial administration should be fixed in the board of county 
commissioners, which should select the controller and treasurer and be anszverable to the elec¬ 
torate for their actions. 

This proposal calls for the repeal of such measures as now divide responsi¬ 
bility between the clerk and treasurer, commissioners and excise board, and for 
amendment of Section 7G0G of the 1931 Statutes which provides for election of the 
treasurer. 

To the end that the board of county commissioners may exercise greater discretionary au¬ 
thority, (1) the county excise boards should be abolished, and (2) statutes zvhich fix levies for 
specific purposes and zvhich regulate salaries, hire of deputies, management of sinking funds, 
interest rates on deposits, debt and tax rate limits should be repealed or revised. 

To abolish 1 , the county excise boards will require repeal of Chapter 6G, Article 21 
of the 1931 Statutes. 

All state supervision of local financial operations, requirements as to subject matter and 
arrangement of local budgets, accounts, audits and reports should be centralised in the office 
of State Examiner and Inspector. The Examiner and Inspector should have full authority 
to make audits, conduct investigations and require reports \vithout legislative authorisation of 
details. 

To the end that a consolidated report may be had annually on the condition of local 
finances, adequate provision should be made for the State Examiner and Inspector to pub¬ 
lish his annual report to the Governor containing “statistics ... of the county and state 
finances ascertained by him,” as provided by Section 3731 of the 1931 Statutes. 

The State Examiner and Inspector should also have authority to fix debt and tax-rate 
limits and/or prescribe methods of financing to be guaranteed by the credit of the state 
whenever such methods are made advisable by the financial condition of any county, mu¬ 
nicipality or school district. 

In this particidar, it is desirable that closer cooperation be provided between the State 
Examiner and Inspector and the several administrative departments zvhich have supervisory 


298 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


or regulatory power affecting local administration to the end that requirements may not be 
imposed which exceed a locality’s financial ability. 

The Court of Tax Review should be abolished. 

This calls for repeal of Initiative Petition 100, now Chapter 66, Article 2 of the 
1931 Statutes. 

FINANCIAL PROCEDURE 

Financial administration consists of a number of processes involving the plan¬ 
ning, apportioning, controlling, and reporting the expenditures of government. The 
character and amount of county expenditures depend on; the nature and scope of the 
activities which, the county performs. All cf the processes! of financial administration 
are closely related. From budget making to the custody and disbursement of funds, 
the entire administrative procedure is based on the same classification of activities. 
It is essential, therefore, that the closest attention be given to the design of the budget 
instrument since its classifications are fundamental to the entire procedure which 
follows its preparation. Budget making in Oklahoma gives evidence of careful thought 
directed toward the development of systematic control and reporting of financial op¬ 
erations. It is unnecessary to stress the importance of such matters as} uniformity 
in the accounting period, fund and, expenditure classification, pre-audit of claims, con¬ 
trol of accountsi and periodic post-audits; for these subjects have been given detailed 
treatment by those who are responsible for developing the system now in operation. 
In the discussion which follows, therefore, the effort is made simply to point out those 
things which hamper the operation of the present system. The first matter which 
deserves attention is the relation of the tax and fiscal calendars to the period pre¬ 
scribed by law for the assessment levy and the collection of taxes. 

Tax and Fiscal Calendars. The tax calendar is discussed in the section of this 
report which deals with taxation and revenue. It must be mentioned here, however, 
because of its effect on the steps in financial procedure just named. Tax assessment 
begins the first day of January. Between that time and the first day of October, the 
law requires that assessments be equalized, tax rates computed, and the finished tax 
rolls certified to the county treasurer for the collection of taxes. Taxes are due 
November 1. In order that these operations may be performed, it is necessary that 
the budget procedure be completed, tlijat appropriations lie voted and tax levies made 
with consideration} given to tax-rate limits and levies that are mandatory. The budget¬ 
ing process begins in June with the submission of requests to the board of county 
commissioners, and ends with the fixing of levies by the excise board, supposedly in 
time for the assessor to complete his tax roll by October 1. It is evident that, for 
the smooth functioning of the fiscal machinery, the several operations involved in the 
planning and expenditures and the raising of revenues should be carefully integrated. 
Otherwise, steps may be required for which adequate provision is not made. In 
the following statement, the tax and fiscal calendars are placed side by side in order 
to show what provisions exist at present for coordinating the steps in the taxing and 
fiscal processes. 

Month Tax Procedure Fiscal Procedure 

January Voluntary assessment of proper- 

March ty (January 1 to March 1) 

April Completion of assessment roll by 

county assessor by the 4tli Mon¬ 
day in April 

June Assessments equalized by county 

board of equalization (4th Mon¬ 
day in April to 1st Monday in 
June) 

June County assessor prepares and de¬ 

livers abstracts of assessments to 





ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


299 


State Tax Commission by 3d Mon¬ 
day in June 


June 


July 


July 


State Equalization Board meets 
3d Monday in June to equalize 
level of assessment, and 

returns adjusted abstract with pub¬ 
lic utility assessments to county 
assessor (no time limit fixed) 



Commissioners get budget estimate from 
county officers by June 30 

County clerk delivers financial statement and 
requests to county excise board by 1st Mon¬ 
day in July 


County excise board meets to approve esti¬ 
mates last Saturday in July 


County assessor delivers completed assess¬ 
ment roll to county excise board 5 days 
after receiving adjustments and additions 
from State Board of Equalization 


Assessment ab¬ 
stract returned 
to assessor by 
excise board 

within 30 days 


County excise board completes budget, vot¬ 
ing appropriations, making apportionments, 
and fixing tax levies, 30 days after receiv¬ 
ing completed assessment roll from county 
a&iessors and 

Period of 40 County clerk certifies completed financial 
days allowed statement with estimate of needs to State 
from tiling Auditor 
budgets for en¬ 
try of protests Excise board may reconvene within 60 days 
after filing budgets to reduce any estimate 
it finds illegal 


October Assessor completes tax rolls and 
certifies them to treasurer by Octo¬ 
ber 1 

Notices of protests sent to county 
clerk, county assessor and county 
treasurer. Assessor makes changes 
in tax rolls if 'they have not been 
turned over to treasurer 


Court of Tax Review meets 1st Monday in 
October to hear protests, and reconvenes 
each Monday until all protests are heard and 
decided 

If assessor has delivered tax rolls to treas¬ 
urer, then treasurer must make refunds of 
taxes collected 


November Taxes (one-lialf) are due November 1 


The critical operation and time limits in the case of each procedure are indicated 
by boldface. 

A careful study of the steps recorded reveals two weaknesses of the present sys¬ 
tem : First, no limit is placed on the time the State Board of Equalization may take 
to adjust the level of assessments and furnish the county assessor with the assess¬ 
ments of public utility property; and second, the hearing of protests by the Court of 
Tax Review is not begun until after the tax rolls are supposed to be completed. The 
results of these defects are (1) that the budget process 'is interrupted for an indefinite 
period by the inability of the assessor^ to furnish the excise board with the 'informa¬ 
tion needed for completing appropriations and computing tax rates; (2) that taxes 
are often not collected on time or, if they are, the assessor is under pressure to com¬ 
plete the rolls; and (3) that the Work of collecting taxes is seriously complicated by 
the repeated necessity of! making tax refunds on account of levy protests. These de¬ 
fects are easy to remedy. Delays in the budget process can be lessened by placing 
a time limit on the State Board of Equalization, or on any other agency which ex¬ 
ercises the functions of that Board. The necessity for refunds on account of levy- 
protests can be obviated by* applying the amounts to be refunded, like surplus funds, 
to the reduction of thei succeeding year’s levies. Not until some such corrections are 


/ 


300 ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 

made will it be possible to develop a system of financial administration which can 
function smoothly within the time limits set by law. 

Classification of Funds. The county budget or “Financial Statement and Estimate 
of Needs” employs the following classification of funds; 

1. General (Current expenses) 

2. Highway Construction and Maintenance (source of revenue other than ad valorem) 

3. School Fund for dependent separate schools, county high schools, and aid to common 
schools. 

4. Sinking 

5. Crippled Children 

6. Biennial Audit 

7. Free Fair 

8. Free Fair Improvement 

9. County Library 

10. Aid to Farm and Home Demonstration 

11. Tuberculosis and Public Health 

12. Tick Eradication 

13. County Emergency Investment Fund 

This may he looked upon as a comparatively simple classification; and it may be 
made even simpler as a result of the constitutional amendment which was adopted 
April 12, 1933, now Chapter 1G9 of the 1933 Session Laws. This amendmment deals with 
the subject of tax limitations and mentions only three of the funds listed above. It 
provides that the total adi valorem levy for county, city, town and school district pair- 
poses may not exceed 15 mills in any county with the following exceptions: (1) An 
additional levy not exceeding two mills on any property within the county for separate 
schools for whites and negro' children; (2) an additional levy for school purposes in any 
school district of an amount which may not exceed ten mills, by vote of the district 
subject to provisions which may be made by the legislature; and (3) an additional 
levy “to reasonably take care of bonded and other valid 'indebtedness of the state and its 
various subdivisions.” Since the Highway and County Emergency Investment funds 
are not supported! by, ad valorem taxation, they may be considered as unaffected by the 
amendment; but the future of five of the remaining funds, is somewhat doubtful. The 
statute which provides for, funds numbered 5 to 9 inclusive permits the levies for these 
funds to be made in addition to those for all otnpr purposes. It is not clear whether 
the amendment permits these as additional levies. The funds numbered 10 to 12 in¬ 
clusive are not specified as additional funds. They will be provided for presumably 
by means of the general fund. 

The budget documents by which the several municipalities and subdivisions sub¬ 
mit their requests to the excise board combine financial statements in each case with 
their estimated needs. Revenues as well as expenditures are shown both by organization 
units and by funds. In addition, the sources of revenues and the piurposes of expendi¬ 
tures are indicated for each organization unit and fund. In such a document sim¬ 
plicity is highly desirable both to expedite the work of preparing and executing the 
budget and to increase the range of its usefulness. It is true that the funding of all 
receipts and expenditures is a practice widely adopted to safeguard resources and 
control expenditures; but it is also true that the same degree cf safety -and control 
may be had with a few funds as with many. In fact, with proper budgeting and ac¬ 
counting a single fund may be made to serve all purposes. Nevertheless, differences 
in sources of revenue and purposes of expenditure may make it less confusing to 
have a few funds rath,hr than one. The following classification of funds is suggested 
for use in the Oklahoma county budget: 

1. General Fund 

2. County Highway Construction and Maintenance Fund 

3. Interest and Bond Redemption Funds 

4. Special Funds (funds to pay off judgment indebtedness, emergency investment and 
relief funds, etc.) 

Only the county budget is considered here, but similar' observations may! be made 
of the budgets cf municipalities and school districts. Revenues by sources, and : ex- 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


301 


penditures by purposes should be shown in detail as at present for each fund and organ¬ 
ization unit. 

Fixing tlie Tax Levies. The final step in budget-making is the fixing of the tax 
rates. Some states follow the practice of making two budgets, one called the appropria¬ 
tion budget and the other the tax budget. In Oklahoma, the twoi budgets are combined 
in a single instrument, as it is highly desirable that they should be; and the rates are 
fixed by the county excise board. In fixing the tax rates for the county, the excise 
board first settles on the total appropriation as previously outlined. They subtract from 
this figure the total cash surplus remaining from the preceding year’s opera¬ 
tions. An allowance of from 10 to 20 per cent of 1 this remainder 1 is then added to cover 
delinquencies in tax collection, the exact percentage to be determined by the excise 
board. The result may be called the gross amount to be levied. Two items are sub¬ 
tracted from this gross figure: 1 First, any- surplus on account of taxes in process of col¬ 
lection ; aud second, the amount of miscellaneous income estimated for the ensuing fiscal 
year. The balance is the net amount for which taxes must be levied. 

As this final budgeting operation is administered in Oklahoma, a number' of diffieul- 
ties have arisen which will not be avoided by transfering the duties of the excise board 
to the board of county commissioners. In the first place the procedure as just de¬ 
scribed is not stated with sufficient clarityi by Chapter 85 of the 1933 Laws, and has not 
been followed strictly by! all of the 77 excise boards. The result, as in all cases of am¬ 
biguity in the tax law, is that large numbers of levy protests! have been entered before 
the Court of Tax Review. This is one of the difficulties in financial administration 
which can be removed by making details of procedure a matter of administration 
rather than legislation and by placing the authority in the hands of the State Examiner 
and Inspector, in the second place, the procedure includes as a part of budget, making 
a method for dealing with tax delinquency. Finally, it should not be necessary to esti¬ 
mate the amount of miscellaneous collections for as long in advance as the full budget 
period. The penalties and miscellaneous collections of the 77 county assessors hfave in¬ 
creased in total from $567 in 1931-32 to $24,177 in 1933-34. The total fees of the 77 

county attorneys have decreased from $24,557 in 1930-31 to $6,000 in 1933-34. Changes 

in individual counties during the same period are, of course, even greater. In, so fkr as 

it is possible, it is desirable to budget only that amount of income which is certain or 

which is ascertainable with a high degree of accuracy. By a system of quarterly allot¬ 
ments computed by the proposed county controller and appropriated by the county com¬ 
missioners, it would be possible to predict the amount of collections with greater ac¬ 
curacy and perhaps to wait until miscellaneous revenues are earned before appropriating 
them to their various uses. 

Proposed Budgeting Procedure. Two policies have been applied to local financial 
administration in Oklahoma; (1) The policy of centralizing responsibility for local bud¬ 
geting, including tax apportionment and the levy of taxes in the county; and (2) that 
of placing supervisory authority in special agencies of the state. The first of these 
policies was made part of the administrative scheme by requiring the county excise 
board to act on all items of the local budgets, including municipal and school district 
budgets, and to make the apportionments and fix the levies for the several localities 
under the 15 mill limit. The second policy is embodied in the various duties of state 
officers respecting financial control which are discussed 1 , in the first part of this chapter. 
By, adopting these policies, Oklahoma hjas taken steps far in advance of many of the 
states where the township is still the unit of local financial administration, and where 
no policy exists for consolidating administrative procedures of the same type among 
different units of local government and administration. In Oklahoma, the financial in¬ 
terest of the localities are largely county-wide and consolidated, with the result that 
the electors of the county can concentrate their attention to a greater degree than is 
possible in most states on a single system of financial administration. 

The changes previously recommended in this chapter should not be construed as 
contrary to these policies. They aim simply to transfer the local financial responsi¬ 
bility from a body whose members are so selected as to be answerable td no one, to a 
body whose members are elected by and answerable to the voters of the county, who 


302 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


include, of course, the voters of the municipalities ancl school districts. If the recom¬ 
mended changes are made, the county commissioners will vote their own appropriations 
along with those of the other officers; but. if all direct administrative duties are prop¬ 
erly assigned, their needs will be small and they will be subject tot the same expenditure 
control as other officers: The proposed county controller should have charge of pre¬ 
paring the budget and submitting it to the board of county commissioners.' He should 
also perform the pre-audit of all disbursing orders and keep all appropriation and con¬ 
trolling accounts of the county. Finaly, as already suggested, he should direct the prep¬ 
aration of the budgets and financial statements of the municipalities and school dis¬ 
tricts, though he should not! necessarily be called upon to prepare them himself. 

Regular provision should be made for revising the budget appropriation during the 
year. Under the present system the only revisions which are possible, after hearings 
by the Court of Tax Review, are the so-called “supplemental appropriations” which may 
be made by the excise board near the end of the fiscal year from unappropriated sur¬ 
pluses. Following the recommendations for reorganization whichl have been made in 
this chapter, the board of county commissioners should meet quarterly for the pur¬ 
pose of reapportioning if necessary the total amount appropriated plus any unappro¬ 
priated surpluses or( less any deficits which have resulted from operations. 

Recommendations. The changes which have been recommended for budgeting pro¬ 
cedure may be specifically stated as follows: 

In order to speed the budgeting procedure in the counties the State Board of Equal¬ 
isation should be required to return to the county assessors their adjusted assessment abstracts 
together with the State Tax Commissioner’s assessments of public utility companies zvithin 
three zveeks from the time they convene. 

This calls for amendment to Chapter 66 of the Laws of 1933. 

In order to lessen the number of tax refunds, those granted on account of levy protests 
should be treated like unappropriated surpluses and used to reduce the levies of the following 
year. 

This calls for amendment of Chapter 66, Article 2 of the Oklahoma Statutes 1931. 

The number of funds should be kept as small as is conveniently possible and the budget 
document made as simple as possible. 

Proznsion for tax delinquencies should be made by other means than by an annual ad¬ 
dition to budget appropriations, and collections of miscellaneous revenue should not be esti¬ 
mated for the fidl budget year in advance. 

This requires amendment of Chapter 85 of the Laws of 1933. 

Allotments of the total budget appropriation should be voted by the board of county 
commissioners; and proznsion should be made for revising appropriation items at these times. 

Execution of the Budget. Following th)e completion of the budget document by the 
county excise board, the next step in financial procedure is the control' of its execution. 
For proper control there are two main requirements: First, a system of accoun|ting 
and reporting which follows the classifications of the budget; and, second, on adequate 
system of internal checks so that only those expenditures are made which are author¬ 
ized. i 

Accounting Procedure. It is entirely proper that the officer who prescribes the 
budget forms should also prescribe the forms of the accounts to be kept by the several 
county officers. , This is the duty of the State Examiner and Inspector. This official 
has given careful attention to the classification of accounts with result that the treas¬ 
urer’s books show; (1) The amount of taxes collected and their apportionment to 
the various agencies and special funds for which levies were made; (2) the amount 
of revenue collected other than taxes, classified by sources and funds ’to) which debited; 
(3) the amount of disbursements crediting the proper accounts; (4) the amount of 
transfers with both debit and credit accounts; (5) the amount of cash, classified by 
depositories; (6) the amounts entered as special deposits by the several county officers 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


303 


arfthorized to keep such, accounts with the amounts withdrawn and the balances; 
and (7) investment of funds, with the condition of the several sinking and investment 
funds. 

The treasurer is charged in separate accounts on the books of the county clerk 
(1) with the taxes and other revenues which he should collect, including delinquent 
taxes turned over to him by his predecessor; (2) with the amounts of all sinking 
funds and investment accounts, and (3) with all moneys of the counties, municipalities 
and school districts. He is credited (1) with all moneys paid over and properly re¬ 
ceipted, (2) with the amount of vouchers, warrants and other county orders cancelled 
and (3) with the amount of uncollected taxes turned over to his successor. The clerk 
keeps a duplicate of the treasurer’s cash book as required by law and makes entries 
on the basis of the treasurer’s daily report. The clerk must also keep the appropriation 
accounts of the county in order that he can ascertain the balance in each appropria¬ 
tion item before signing warrants issued by the county. 

Internal Checks. All taxes and miscellaneous revenues are ultimately deposited 
with the treasurer. For each collection, the treasurer makes out a receipt in tripli¬ 
cate form. The original copy goes to the taxpayer and a duplicate to the clerk, and 
a third copy is kept by the treasurer. The amount of receipts made must balance 
with the amount of cash received each day, and also with the deposits in the banks, 
which are made the morning following the collection. The county treasurer makes a 
daily report each morning covering the business cf the previous day. This 
report shows receipt numbers for every collection, whether from taxes or miscellaneous 
sources and the account which is to be debited. It also shows all payment numbers 
of all expenditures and the accounts which are to be credited. This daily report is 
made out in duplicate; and the original is sent to the county clerk, together with 
duplicate receipts, duplicate checks, cancelled warrants, bonds and coupons. The 
treasurer keeps the duplicate of his daily report, from which he posts the items to 
the separate accounts, in his general and subsidiary ledgers. The treasurer also keeps 
a daily collection record, to which is posted each day each duplicate collection receipt. 
At the end of the month the general ledger must check with the daily collection 
record. Collections are posted to the various accounts in the subsidiary ledger on the 
basis of the daily collection ledger. Those include collections made under protest. When 
collections are made under protest, however, the protested amount is shown in the 
account to which it is posted in the subsidiary ledgers, and the total amount pro¬ 
tested is shown by funds in the ledger (general). In the system just described, Ok¬ 
lahoma has the basis of a truly fine accounting practice. Recommendations have al¬ 
ready been made for transferring the function of control from the county clerk to a 
regular controlling officer. It is only necessary here to call especial attention to a few 
points at which improvement may be made. 

Treasurer’s Depository Accounts. Besides fund accounts the county treasurer 
keeps depository accounts for several officers. In respect to these accounts, the treas¬ 
urer acts like a banker, receiving deposits, and making disbursements on properly signed 
voucher orders. The operations of these accounts are shown in the treasurer’s monthly 
report, but do not appear in the annual financial report. They should be treated 
as deposit funds. They would then be accounted for as all other liabilities and would 
appear on the balance sheet of the proposed county controller. 

Investments. The treasurer’s investment operations include the management of 
county and school district sinking funds, the county emergency investment fund and 
the common school relief fund. These are not properly treasury functions; and the 
treasurer should not be concerned with these operations except as they affect cash. 
Under the proposed reorganization of financial administration, the county controller 
would have charge of these sinking and investment funds, and would account for 
them as for all other appropriation accounts. As the county is now organized for 
financial administration, there is really no officer whose duties are designed to 
include the performance of these functions. The county clerk is now the con¬ 
troller, keeping the appropriation accounts and performing the pre-audit of all 
claims. Under the present form of organization he should also keep the sinking 


304 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


fund and investment accounts. He does not have sufficient freedom from/his other 
duties, however, to allow him to manage the county’s investments. 

Closing the Books. The most serious difficulty with the present system of ac¬ 
counting is that the county’s books are not closed annually. A separate i'Und is kept 
for the current year and for each of a number of prior years, /whereas the books 
should be closed into the surplus account each year and balances carried forward to 
open the next year’s books. With the present system it is difficult to ascertain a 
county’s financial condition as of a given date; and, when its condition is reported 
from the book records, the result is far from clear. Moreover, with each year’s tax 
account kept separately! and a separate receipt required for each year’s taxes when paid, 
the delinquent tax accounts are never brought together except by a special appropria¬ 
tion allowing the treasurer to do so; and the work of the treasurer at tax-paying 
time is multiplied many times. As soon as a tax-payer becomes delinquent, the amount 
of his taxes should be entered in a ledger account under his name. In this way 
each year’s tax roll could be closed out when the deliquency date is reached, the 
amount of each individual’s delinquent taxes could be ascertained from a single ledger 
account, and the total amount would be shown in the county’s general ledger. The 
classification of accounts which is nofw in use clearly distinguishes receipts as to 
sources and funds and expenditure as to character, function and organization units. 
If the books are closed each year as suggested, the present classification can bq adopted 
easily to the task of revealing the financial condition of the county. 

Books and Records. The keeping of accounts may be improved considerably by 
replacing the bound ledgers in use at present with modern forms of bookkeeping 
equipment. In the larger counties especially, where the number of transactions is 
great, accounting practice may be rendered speedier and far more accurate by the 
use of accounting machines. 

Careful separation should be made and maintained betzveen treasury operations and con¬ 
trol operations, the treasurer accounting for only those transactions zohich directly affect cash. 

All special deposits should be treated as deposit funds and should appear on the balance 
sheet of the proposed county controller. 

The State Examiner and Inspector should deznse a system of accrual accounts to be 
installed as quickly as possible; and require that all local] treasurers close their books once 
each year. 

Modern forms of bookkeeping equipment should be studied and a form adopted which 
is suited to the needs of the Oklahoma localities. 

Collection and Custody of Funds. Thle collection of public funds is accomplished 
through several agencies. The treasurer collects taxes and certain miscellaneous rev¬ 
enues including his own fees. Other officers collect fines, fees, forfeits, licenses and 
other misellaneous revenues and deposit them with the county treasurer who gives 
them a miscellaneous receipt for their deposit. The treasurer is the official depository 
for all local funds save municipal and school district funds, which are kept by the 
municipal and school district treasurer respectively. 

This system of decentralized collection and custody of funds makes it necessary 
to audit the separate accounts of several of the county, municipal and school district 
officers. There is no practical way of centralizing the collection of miscellaneous 
revenues; but auditing can be made simpler (1) by requiring each officer making a de¬ 
posit to turn over <a duplicate of the receipt he gave for the money he is depositing, 
and (2) by abolishing school district treasurers and transferring the custody and 
disbursement of school district funds to the county treasurer. 

Disbursement. As is proper, only two forms of checks are used for the disburse¬ 
ment of funds by the county treasurer, the treasurer’s check and officers’ depository 
vouchers. The latter are used only in connection with officers’ depository accounts 
(1) to pay out money as authorized by law, and (2) to make transfers between funds. 
Treasurers’ checks are used for all disbursements from appropriation funds. Tire 
methods of accounting for these transactions have been treated in an earlier section 
of this chapter. 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


305 


School Fund Transfers. Transfers of revenues to school district treasurers could 
be eliminated by abolishing those treasurers and charging the county treasurer with 
the custody of all school district funds. 

Issue of Warrants. All claims against the county are filed with the county clerk, 
who presents each claim to the county commissioners. Warrants are issued by the 
county clerk when the claims against an appropriation fund exceeds its cash balance. 
The clerk registers each warrant issued in a book for that purpose. He delivers each 
warrant he draws to the county treasurer and it is registered in the treasurer’s office 
also. Warrants bear 6 per cent interest from the date of their registration in the 
treasurer’s office. On the face of the warrant is recorded the following information: 
(1) The fund on which it is drawn; (2) the number of the account to be credited; 
(3) the department credited; (4) the purpose for which drawn; (5) the signature 
of chairman of the board of county commissioners, attested by the county clerk or 
his deputy. 

Redemption of Warrants. When the county treasurer collects enough in specific 
funds, as shown by the subsidiary ledger accounts, he issues a warrant call by ad¬ 
vertising in the newspaper that 30 days from the date of call, interest will cease on 
warrants designated by fund and by fiscal year. Warrants are redeemed in the 
order in which they were registered, on presentation to the county treasurer. Interest 
is paid from the date of registration to the date of presentation, up to 30 days after 
the warrant call. 

Bach collecting agency taken making a deposit with the county treasurer should be re¬ 
quired to turn over a duplicate of the receipt which he gave for the money he is depositing. 

Ctistody and disbursement of school district funds should be transferred to county treas¬ 
urer and school treasurers should be abolished. 

This calls for amendment to Article 9, Chapter 34, Statutes 1931 and acts amen¬ 
datory thereto. 

REPORTING 

Oklahoma is fan in advance of many of the states in reporting the operations of 
local units of government and administration. The reports are uniform for all local 
units of the same class; they contain all the information, much of it in appropriate 
form, which is essential to intelligent financial management. The suggestions which 
are made in this chapter are intended to assist the development of the reporting system 
in the direction it has already taken. 

Annual Financial Report. The most important of the county financial reports is 
the annual Financial Statement and Estimate of Needs which is filed with the State 
Auditor. This report has already been referred to as one of the chief tools of county 
financial administration. It should be prepared by the proposed county controller 
and should present a concise statement of the financial condition and operation of 
the year just ended. 

To show how the year’s operations have been conducted, whether with a deficit 
or a surplus, the statements of this report should furnish among other things a ready 
comparison of revenue receipts and government cost payments and should show the 
increase or decrease in the net debt for the year. For an actual surplus to have 
been earned, revenue receipts must have exceeded governmental cost payments. The 
amount of this excess should then balance with the decrease in the net debt. For 
a final deficit to appear, governmental costs payments must have exceeded revenue 
receipts, and the difference should agree with the increase in the net debt. 

The execution of the past year’s budget and the balances in fund appropriations 
are other vital facts on which to judge past operations and base future fiscal policy. 
This information is obtainable from the present form of the report only at the ex¬ 
pense of considerable labor; and there is thus the danger that it will be ignored. 

The present document is much too large particularly in its bound form. It is 
excessively costly, a*wkward to handle, difficult; to file, and each page is likely to con¬ 
tain several different kinds of information. The pages should be reduced to such a 


306 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 

/ 

size that they can be typewritten if desired, and each page should contain no iuore 
than a single type of information. The reports should not be bound wheji filed; but 
the pages should be loose so that they can be differently assembled if need be. The 
State Examiner and Inspector should publish a bound financial report on the conn les, 
municipalities, and school districts showing a consolidated statement for each class 
of unit. Besides being too large, the present document is more complicated and less 
informative than is desirable. This is true partly because of emphasis on its con¬ 
formity to statutory requirements, partly because of its arrangement, and part) 
because the county’s books are not closed formally. 

It has been suggested repeatedly that less use be made of statutory requirements 
and more administrative regulations. In this field as in others concerned with local 
financial administration, the State Examiner and Inspector should have charge. He 
should install a system of accrual accounting for all local treasurers and require them 
to close their books once a year in accordance with good accounting practice. The 
arrangement of the annual financial reports could then be improved along lines de¬ 
signed to make them easier to prepare and to increase their range of usefulness. Only 
the county report is discussed here, but municipal and school district reports should 
be similarly treated. 

Contents of Financial Statements. Statements appropriate to reporting the fi¬ 
nancial condition and operations of county government in Oklahoma fall into two 
classes: (1) Fund or budget statements, and ('2) proprietary, or asset liability and 

income, statements. The fund or budget statements are intended to show the con¬ 
dition of the funds and appropriations for the county’s operating services. That is. 
they should show the resources, obligations and balances of all funds administered by 
the county. The proprietary statements are intended to reveal the county’s financial 
condition and the means by which this condition was reached. That is, besides a 
statement of assets (current and endowment) and liabilities (current and fixed) they 
should include analysis of income and expenditures. Income items should be classi¬ 
fied (1) by character (‘whether revenue or non-revenue receipts), (2) by sources 
(whether tax or non-tax), and (3) by funds and consolidated. Expenditures should 
be classified (1) by character (whether governmental or non-governmental cost pay¬ 
ments), (2) by objects of expenditure, (3) by organization units. (4) by functions of 
government and (5) by funds and consolidated. 

Proposed Form of Report. The following outline repeating much of the subject 
matter of the present annual report is intended to suggest a plan by which it could 
be modified to advantage. 

1. Budget for the ensuing year showing details of appropriations by funds, operating 
units, and services of government. 

2. Statements for the year ended of proposed county controller. 

(a) Consolidated Proprietary Balance Sheet showing assets, liabilities and surplus, 
(or net debt) consolidated and by funds. Current assets should be classified as cash, taxes 
and accounts receivable, and other current assets. Endowment assets (such as oil leases, 
etc.) should be enumerated by title. Calculation of surplus or net debt should show current 
surplus (or deficit), the excess of endowment assets over fixed liabilities, (or the reverse) 
and the resulting net surplus or net debt. Current liabilities and revenues should show 
accounts payable, reserves for accounts payable, and deposits held. Fixed or bond liabilities 
should be enumerated by title. 

(b) Consolidated Proprietary Statement of Operations showing income, expenditures 
and excess of income over expenditures (or the reverse) consolidated and by funds. Income 
should be classified by character and sources, and expenditures by functions of government. 
In following statements these classifications can be expanded to show the kinds of tax and 
other revenues in detail, and the expenditures by objects and organization units. 

(c) Consolidated Budget Statement of Fund Resources, Obligations and Balances. 
Resources should include a summary statement of cash less immediate demands against cash; 
obligations should show unexpended balances of appropriations, and reserves against bills 
payable. The Unappropriated Surplus should then be reconciled with the current surplus (or 
deficit) shown in the Consolidated Proprietary Balance Sheet. 

(d) Summary Statement of Fund Operations showing the balance in each fund at the 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


307 


beginning of the year, the increases in each balance by appropriation and otherwise, net trans¬ 
fers into each fund, total expenditures, amounts closed to surplus, reservations for bills 
payable, and closing balances. The totals for all funds can be shown as footings to the 
columns showing the information just described. 

(e) Schedules of indebtedness showing forms of debt, amount authorized, issued and 
outstanding; and principal and interest requirements. 

3. Statements of the County Treasurer : 

(a) Detailed statement of receipts by sources and funds. 

(b) Detailed statement of expenditures by funds. 

(c) Statement of cash classified by depositories (including the county treasury as a 
depository). 

(d) Delinquent tax schedules (agreeing with county controller’s balance sheet). 

4. Department financial statements. 

5. Statistical data of public interest. 

Other Financial Reports. Besides the annual financial statement of the county 
there are at present the treasurer’s daily and monthly reports. The first is prepared 
for the county clerk and shows receipts by sources, disbursements, funds, deposits and 
depository accounts, investment of fund, payments to other units of government and 
refunds. The second is prepared for the State Examiner and Inspector and shows 
receipts by sources; disbursements by type of disbursing instrument; cash classified 
by depositories, including cash held by the treasurer for other officers; and fund 
balances, apportionments, transfers and disbursements. If the recommendation is fol¬ 
lowed for a quarterly allotment plan, there should be in addition a quarterly state¬ 
ment of appropriation and allotment operations, prepared by the proposed county con¬ 
troller for the state examiner and inspector. 

The county treasurer is also required to report to each school district treasurer 
annually before the first Tuesday in July regarding the sources and amounts of all 
moneys received, the amounts disbursed, and the condition of assets and liabilities of 
which the county treasurer has had charge for each school district. If the school dis¬ 
trict treasurers are abolished, these reports can be consolidated and included in the 
annual financial statements of both the treasurer and the proposed county controller. 

Printing, Notices, Advertising. The county publishes other reports and notices in 
addition to the ones already mentioned. These include proceedings of the commis¬ 
sioners and advertising of personal tax assessments, delinouent personal taxes, delin¬ 
quent tax sales, and tax! resales. Legal printing, including legal notices and the budget 
documents is paid for by the county. In 1933-34, the costs of printing, advertising and 
publishing of notices together totaled over $90,000 for the 77 counties. These costs 
were by no means uniform. They ranged from $55 in Adair to $9,217 in Oklahoma 
County. Some economy might be effected by careful study of the requirements for 
printing, publication of notices and advertising; but the opportunities are not great 
and it is doubtful if results would pay for the effort involved. 

The annual Financial Statement una Estimate of Needs should be revised both as to form 
and contents along the lines suggested in this chapter. 

Following the adoption of a quarterly allotment system the proposed county controller 
should prepare for the State Examiner and Inspector a quarterly statement of the appro¬ 
priation a>td allotment operations of the county. 

The printing of all forms for reports, budget documents, and standard legal notices 
should be undertaken by the state. 

DEBT ADMINISTRATION 

The amount of bonded indebtedness which a county can incur in any one year 
without assent of three-fifths of the voters voting at an election held on the question 
is limited by the Constitution and by statute to the total of the “income and revenue” 
provided for that year; and the total of all forms of debt including outstanding war¬ 
rants and judgments is limited to an amount not to exceed 5 per cent of the total 
assessed valuation of the county. 1 The Constitution provides further that all evidences 
of indebtedness, when issued by a county, must bear certification by the county clerk 


'Const. Art. X, Secs. 16, 26. 



308 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


and county attorney of the fact that they are within the legal debt limit. 1 It says 
nothing, however, about subsequent changes which may be made by the State Board 
of Equalization in the assessed value of taxable property. Since the Board of Equaliza¬ 
tion lowered total valuations over 30 per cent between 1931 and 1933 and will probably 
raise them again as property values increases, the 5 per cent limit provided by the 
Constitution has proved of doubtful utility. In the case of Fairbanks-Morse v. The 
City of Geary 2 the court ruled that debt incurred in excess of the constitutional or 
statutory limit was void; but this decision cannot be applied, of course, to debt which 
exceeds such limits when the limits were lowered subsequently to its being incurred. 
Money borrowed must be used solely for the purpose specified in the law authorizing 
the loan; and no bond can be issued for a longer period than 25 years. 3 

Nature and Extent of Bonded Indebtedness. The lack of a published historical 
lecord of the debts of the counties necessarily confines a discussion of indebtedness 
to information available in recent records. In this regard the lack of official con¬ 
solidated reports is regrettable, but unofficial compilations are available which show 
the condition of county and township indebtedness as of June 30, 1933 and the sinking 
fund operations for the fiscal year ending with that date. In 24 counties there' were 
no township bonds, and in 11 counties no county bonds outstanding on June 30, 1933. 
The following table shows the total bonded debt of both counties and townships which 
was outstanding on June 30, 1933, with the total amounts issued, classified according 
to the purposes for which they were issued. 

Amount Issued 


Purpose of Issue Counties Township Total 


Local Improvements 10,654 1,910,511 1,921,165 

Court House and Jail . 2,832,791 _ 2,832,791 

Jail 195,000 _ 195,000 

Road 28,780,270 6,174,402 34,954,672 

Bridge 6,276,881 413,003 6,689,884 

Hospital . 6,660 _ ’ 6,660 

.Cemetary _ _ _ 

Funding 7,424,007 1,107,003 8,531,010 

Miscellaneous 537,729 _ 537,729 


Total Issued All Purposes 46,063,992 9,604,919 55,668,911 


Total Bonds Outstanding June 30, 1933 37,043,530 8,283,431 45,326,961 


Funding Bonds. Every county, municipality or school district is authorized to 
fund or refund its indebtedness including bonds, judgments and warrants “upon such 
terms as can be agreed upon.” 4 Funding bonds may be issued in any denomination 
from $100 to $1,000, subject to the same limitations as other indebtedness and legalized 
by the same methods. The amounts of funding bonds issued by counties and town¬ 
ships are shown in the table just; presented. 

Judgments. In addition to their bonded debt, the counties and townships had 
outstanding on June 30, 1933, $1,250,318 in unpaid judgments. Before 1931, it was 
a common practice of local officers to exceed their budget appropriations for the 
purchase of supplies, material and equipment, and in the letting of contracts. Pur¬ 
chases were made and contracts let without the authorization required by law: and 
a judgment was then obtained by the seller or contractor against the county. Accord¬ 
ing to law, the counties must pay off each judgment in three years from the time 
it is granted, one-third each year. Payments of installments of judgments falling 
due, plus interest at 6 per cent on the unpaid balance, is made as a sinking fund 
appropriation. Since no sinking fund levies fall within the tax rate limitations, there 
was no evident limit to which judgments could be piled up against a county, provided 
they could be obtained in the courts. 

A law enacted in 1931° makes clear the illegality of this procedure by declaring 
that “no purchase order or contract shall be valid unless within the appropriation as 

’Const. Art. X, Sec. 29. 

J 59 Oklahoma 22. 

“Const. Art. X, Secs. 16, 26. 

4 Stat. 1931, Sec. 5932. 

“Laws 1931, Chap. 32, Art. 1 
















ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


309 


made for that particular and specific purpose and so certified by the officer charged 
with keeping the appropriation and expenditure records of the county or municipality.” 1 
It also imposes the penalty of forfeiture and removal from office on any officer 
"who shall incur any indebtedness, claim or obligation for any purpose or on any 
account in excess of the appropriation therefor. . . .” 2 The law does not make 
mandatory the accusation of an offending officer; but would-be sellers will no longer 
accept purchase orders or contracts which presumably would be held by the courts 
to be insufficient or illegal basis for a judgment against a county. 

Tax-rate Limitation. The townships are abolished and will incur no further 
indebtedness of any kind; but there) is still danger that the counties and municipalities 
will continue to incur uncontrolled debt because the statutes make insufficient pro¬ 
vision for emergency financing. The financing of mandatory public obligations such 
as hospitalization, public welfare, and care of the institutional population of the 
county is made extremely difficult by reason of the tax-rate limits on the special 
funds for these purposes. Expenditures for public charges are accepted by all civilized 
communities as a moral obligation. When in Oklahoma the needs of public charges 
exceed the appropriations which the localities are allowed to make for the purpose, 
it becomes necessary for them to make contracts in excess of their appropriations and 
obliges the vendor to get a judgment against the county or municipality. 

Interest and Principal Requirements. All the requisite information regarding 
maturities and interest and principal requirements on account of bonded and judg¬ 
ment indebtedness is shown in the annual financial reports to the State Examiner and 
Inspector. The following table shows accruals of principal and interest during the 
fiscal year 1932-33 on outstanding bonds and judgments of the counties and townships. 


Bonds Judgments 

Principal Interest Principal Interest 

Counties $2,029,743 $1,788,946 $611,333 $66,430 

Townships 418,863 _ 479,893 101,405 _ 12,620 

To til $2,448,606 $2,268,839 $712,738 $79,050 


The total of these requirements represented an average levy above tax-rate limits 
of $3.91 per thousand, or nearly four mills on the 1932 assessed valuation. 

Redemption of Indebtedness. For the redemption of local indebtedness, the Con¬ 
stitution requires that at or before the time the debt is incurred provision shall be 
mh.de “for the collection of an annual tax sufficient ... to create a sinking fun)d, 
first, for the payment of interest coupons as they fall due; second, for the payment 
of bonds as they fall due; third, for the payments of such parts of judgments as such 
municipality may, by law, be required to pay.” 3 Serial bonds are not mentioned in the 
Constitution; but Chapter 22 of the Laws of 1927 provides that all bonds issued in the 
future by any municipality or subdivision of the state, whether of a new issue or for 
the funding or refunding of old issues, shall be of this type. 4 

Sinking Fund Management. The statutes provide for the investment of the local 
sinking funds by the treasurer having charge of them. In the case of the counties, town¬ 
ships, and school districts, it is the county treasurer who hasl charge. He may invest the 
sinking fund moneys- as follows; “ . . . in United States Bonds, the bonds or warrants 
of the state or any county, city, town, township, school district, or any other municipality 
thereof - or in any pub ic building warrants maturing prior to the date of the bonded 
indebtedness and for the payment of which any such sinking fund 'is created.” 5 Tables 
I, IT, HI. and IV are consolidated sinking fund statements of the counties and town¬ 
ships showing (1) assets and liabilities on June 30, 1933, and (2) operating statements 


Taws 1931, Sec. 5970. 

Taws 1931, Sec. 5975. 

s Const. Art. X, Secs. 26 and 28; Stat. 1931. Secs. 5913, 5919, as amended by laws 1933, 
Chap. 27. 

<Stat„ 1931, Secs. 5929-30. 

'Stat. 1931, Sec. 5914. 








310 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


for the year 1932-33. The accepted forms of financial statements are used herein and 
should replace the forms now used in the annual financial reports to the State Examiner 
and Inspector in order (1) that commonly recognized accounting terms may be em¬ 
ployed and (2) that the statements may be checked readily for certain important facts 
and for accuracy. 

From the consolidated sinking fund balance sheets (Tables I and III) it appears 
that there were deficits ini both county and township sinking funds on June 30, 1933, 
amounting respectively to $1109,556 and $601,054 for the state as a whole. The con¬ 
solidated operating statements (Tables II and IV) indicate, however, that there were 
decreases from the previous year in both deficits. The information with which to verify 
these figures is lacking in the financial reports and consequently cannot be given here. 
It is strongly recommended that the annual financial report for each county and for 
townships within each county contain balance sheet and operating statements following 
the accepted forms for such statements. Balance sheet statements should be compara¬ 
tive; that is, information for the previous year as well as for the year just ended should 
be shown in parallel columns with a column showing the increase or decreases in each 
item so that increases or decreases especially in the surplus (or deficit) item can be 
seen at a glance. Operating statements may be made comparative also; but the im¬ 
portant part of the operating statement is the calculation of the net excess of income 
over expenditures for the year. This excess represents the increase in the surplus or 
decrease in the deficit existing at the previous year’s end and should agree with the 
differences in the surplus^ item shown in the comparative balance sheet statement. 

TABLE I 

CONSOLIDATED SINKING FUND BALANCE SHEET OF COUNTIES 
AS OF CLOSE OF BUSINESS 
JUNE 30, 1933 


Assets: t 


1. Total Cash on Hand and Invested * 1 _$ 3,744,038 


2. Net Balance due Sinking Fund of Taxes-Receivable _ 1,448,305 


3. Accrued Interest 2 _- - 

4. Investments: Bonds 

(a) Municipal Bonds _ 3,303,572 

(b) Liberty Bonds _ 12,750 


Total Bonds _ 

5. Other Investments : 

(a) 1932-33 Warrants Purchased _ 249,478 

(b) 1931-32 Warrants Purchased _ 610,959 

(cl. 1930-31 Warrants Purchased _ 130,503 

(d) Prior Years’ Warrants Purchased _ 517,876 

(e) Prepaid Judgments not Provided for by Tax Levy_ 271,154 


Total Other Investments 
Total Assets _ 


$3,744,038 

1,448,305 


3,316,322 


1,779,970 


10,288,635 


Liabilities: 

1. Coupons Matured and Unpaid_ 126,096 

2. Bonds Matured and Unpaid _ 223,280 


Total Unpaid Coupons and Bonds _ 349,376 

3. Judgments and Judgment Interest Matured and Unpaid 3 _ 195,923 195,923 


Total Liabilities _ 

Net Worth: 

1. Total Sinking Fund Accruals 4 5 _ 10,852,892 

2. Surplus (Deficit) --:-:--- (-) 1,109,556 


Total Net Worth _ 

Total Liabilities and Net Worth 


545,299 


9,743,336 

10,288,635 


’Separation of invested and uninvested cash should be shown. 

’Not reported. 

8 Not separated. 

^Properly separated in annual financial statement, but totaled for purposes of this report. 









































ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


311 


TABLE II 

CONSOLIDATED STATEMENT OF COUNTY SINKING FUND OPERATIONS FOR 
TWELVE MONTHS ENDED JUNE 30, 1933 


A. Receipts: 


1. Revenue Receipts 

(a) 1929 and Prior Ad Valorem Taxes _$ 250,641 

(b) 1930 Ad Valorem Tax _ 125,067 

(c) 1931 Ad Valorem Tax _ 907,801 

(d) 1932 Ad Valorem Tax _ 1,983,617 

(e) Gasoline Tax _ 216,660 

(f) Automobile License Tax _ 61,200 

(g) Penalties on Ad Valorem Taxes _ 207,324 

(h) Interest, County Sinking Fund Investments _ 155,784 

(i) Premium on Bonds Sold _ 20 

(5) Accrued Interest on Bonds Sold _ 1,850 

(k) Protest tax Refunds _:_ 31,932 

(l) Other Revenue Receipts _ 187,643 


Total Revenue Receipts _ 

2. Non-Revenue Receipts 

(a) Sale of Investments _ 1,838,117 

(b) Residue of Unused Bond Funds_ 1,626 

(c) Other Non-revenue Receipts _ _ 


Total Non-revenue Receipts 
Total Receipts _ 

B. Disbursements: 


1. Fixed Charges 

(a) Interest on Bonds _ 1,900,354 

(b) Interest on Judgments _ 20,030 

Total Fixed Charges _ 

2. Capital Outlays 

(a) Bonds Paid ---,- 1,196,730 

(b) Judgments Paid _ 297,395 

(c) Purchase of Investments _ 2,048,204 

Total Capital Outlays _ 

3. Other Disbursements _ 

(a) Interest on Past-due Coupons _ 6,456 

(b T Interest on Past-due Bonds _ 656 

(c) Commission to Fiscal Agency _ 8,122 

Total Other Disbursements _ 

Total Disbursements --- 


C. Excess Receipts over Disbursements _ 

Add Capital Outlays (B-2) - 

D. Excess of Income over Expenses- 

Deduct Sales of Investments (A-2(a)) _ 

E. Net Excess of Income over Expenditures, 

(Representing Increase of Surplus) - 


84,129,539 


1,839,743 

$5,969,282 


1,920,384 


3,542,329 


15,234 

5,477,947 

491,335 

3,542,329 


4,033,664 

1,838,117 


2,195,547 


TABLE III 

CONSOLIDATED SINKING FUND BALANCE SHEET OF TOWNSHIPS AS OF 
CLOSE OF BUSINESS JUNE 30, 1933 


Assets: 

1. Total Cash on Hand and Invested 


$ 2,718,320 


2. Net Balance due Sinking Fund of Taxes Receivable 


417,239 


3. Accrued Interest - 

4. Investments: Bonds 

(a) Municipal Bonds - 

(b) Liberty Bonds - 

Total Bonds_ f - 

5. Other Investments 

(a) 1932-33 Warrants - 

(b) 1931-32 Warrants - 

(c) 1930-31 Warrants --- 

(d) Prior Years’ Warrants - 

(e) Prepaid Judgments not provided for by tax levy 

Total Other Investments - 


$2,718,320 

417,239 


10,826 


$3,146,385 


Total Assets 










































































312 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


TABLE III (Continued) 

Liabilities: 

1. Coupons Matured and Unpaid - 116,423 

2. Bonds Matured and Unpaid _ 39,748 

Total Unpaid Coupons and Bonds _ 156,171 

3. Judgments and Judgment Interest Matured and Unpaid- 53,445 

Total Liabilities _ . 

Net Worth: 

1. Total Sinking Fund Accruals _ 3,537,823 

2. Surplus (or Deficit) _ (-) .601,054 


Total Net Worth _ 

Total Liabilities and Net Worth 


209,616 


2,936,769 

3,146,385 


TABLE IV 

CONSOLIDATED STATEMENT OF TOWNSHIP SINKING FUND OPERATIONS FOR 
TWELVE MONTHS ENDED JUNE 30, 1933 


A. Receipts: 


1. Revenue Receipts: 

(a) 1929 and Prior Ad Valorem Taxes _ $ 27,667 

(b) 1930 Ad Valorem Taxes _ 19,382 

(c) 1931 Ad Valorem Taxes _ 199,469 

(d) 1932 Ad Valorem Taxes _ 444,995 

(e) Interest, Township Sinking Fund Investments_ 37,457 

(f) Accrued Interest on Bonds Sold _ 7,375 

(g) Protest-tax Refunds _ 704 

(h) Other Revenue Receipts _,_ 22,723 


Total Revenue Receipts _ 

2. Non-Revenue Receipts: 

(a) Sale of Investments _ 68,324 

(b) Other_ _ 


Total Non-Revenue Receipts 

Total Receipts _ 

B. Disbursements: 


8759,772 


68,324 

8828,096 


1. Fixed Charges: 

(a) Interest on Bonds _ 488,381 

(b) Interest on Judgments _ 4,839 


Total Fixed Charges _ 

2. Capital Outlays: 

(a) Bonds Paid _ 203,601 

(b) Judgments Paid _ 45,017 

(e) Purchase of Investments _ 61,691 


Total Capital Outlays _ 

3. Other Disbursements: 

(a) Interest on Past-Due Coupons _ 11,460 

(b) Interest on Past-Due Bonds _ 794 

(c) Commissions to Fiscal Agency _ 1,768 


Total Other Disbursements- 

Total Disbursements ,_ 

C. Excess of Receipts over Disbursements 
Add Capital Outlays (B-2) _ 


493,220 


310,309 


14,022 

817,511 

10,545 

310,309 


D, Excess of Income over Expenses _ 320,854 

Deduct Sale of Investments (A-2(a)) _ 68,324 

E. Net Excess of Income over Expenditures _ 252,530 


County Emergency Investment Fund. In 1933 the legislature created in each county 
an emergency investment fund 1 to which is apportioned 50 per cent of the receipts from 
the gasoline tax and the automobile licenses, all of which previously went to the high¬ 
way fund. The county treasurer manages the fund under the direction of the county 
excise board. The law provides for the use of the county emergency fund as follows: 
(1) To purchase current warrants of the county which may be outstanding, (2) to pur¬ 
chase prior years’ warrants of the county, (3) to increase assets of the sinking fund 
sufficiently to pay off indebtedness on account of road and bridge bonds, and (4) for 
payment to the highway fund, where it actually goes in most of the counties. The county 


J Laws 1933, Cliap. 137. 





























































ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


313 


excise board may vary the order of the first three uses; but any funds which are un¬ 
used for the first three purposes on December 31 and on June 30 go on those dates 
to the highway fund. By using this fund to advantage, the county treasurers have been 
able to improve the liquid condition of the county sinking funds, replacing investments 
the value of which has decreased, with actual cash. For some counties the creation of 
this fund has been fortunate. Others, especially those with low valuations have not 
been able to use it to the best advantage. Their difficulty arises not so much from heavy 
fixed indebtedness as from inability to raise sufficient operating revenues under the 15 
mill tax limit. These counties are most likely to allow their investment fund revenues 
to revert to the highway fund where, in their particular cases, the need for revenues 
is not great either. Perhaps, in the case of these counties, the best use could be made 
of these revenues by turning a part of them under proper authority into the county 
general fund. 1 j 

Advantage should be taken by all counties of the county emergency investment fund act 
zvhile it is in effect to increase the liquidity of the county sinking fund. 

The net obligations remaining after the repeal of the act should then be funded as soon 
as possible into serial bonds with a regular rate of retirement. 

Management of the sinking and investment funds should be transferred to the proposed 
county controller. 

The retirement of judgments should be provided for by means of a fund entirely dis¬ 
tinct from the bond fund. 

Warrants and judgments purchased as sinking fund investments should be listed by 

municipalities issuing them as well as by the year of their issue. 

Accepted forms should be adopted as soon as possible for all accounting statements in¬ 
cluding those used to report the condition and operations of sinking funds, and advantage 

should be taken of 'these forms to show within each statement the verifications of the informa¬ 
tion reported. 

The State Examiner and Inspector should include in his proposed published report a 
consolidated statement of all local sinking funds and such statistical information regarding 
the management of these funds as are of interest to the public. 

PURCHASING 

The several county officers; in Oklahoma make the purchases for their own offices. It 
would not be practicable to recommend complete centralization of purchasing in the 
counties because of the administrative relationships which exist between certain county 
offices and departments of the state government. 

It has been recommended elsewhere in this chapter, however, that the state under¬ 
take the printing of forma for county financial reports and standard legal notices; and 
certain other supplies such as office supplies, bookkeeping equipment and stationery lend 
themselves readily to centralized purchasing by an officer of the county. The proposed 
county controller is perhaps best suited to the task. The following recommendation 
is therefore made: 

The board of county commissioners should be permitted to centralise the purchase of 
county supplies, with such exceptions as may be provided by law, in the office of the pro¬ 
posed county controller. 


CHAPTER XVIII 

FINANCIAL CONDITIONS AND OPERATIONS 

In Chapter XV it was pointed out that at the time of the survey no single de¬ 
partment or agency of the state government published complete information with re¬ 
gard to the state’s financial condition and operations. It was also mentioned that this 
condition existed largely because of divided authority and because the legislatures in 
the past have authorized the expenditure of government receipts without being first 
covered into the State Treasury and disbursed by state warrants. 

The survey report has been delayed considerably because of the difficulty experi¬ 
enced in securing reliable financial data. Much time was lost in the beginning because 
of the belief that the State Auditor’s report exhibited the financial condition and op¬ 
erations of the state government and it was only after considerable work had been 
done that it was found necessary to approach the subject from an entirely different 
viewpoint, in that it was essential to tie ini all of the fiscal operations to the cash 
received into the State Treasury. 

The data embodied in the general balance sheet were obtained by examining the 
records of the State Treasurer’s office. To make it possible to present the material 
of this statement and that of the operating statement and schedules supplying details 
of all receipts and disbursements which follow, it was necessary to prepare a trial 
balance of all of the funds of the state government and particularly of all of those 
accounts contained in the depository funds of the state departments and establish¬ 
ments. This involved the determination of the opening and closing balances of each of 
these accounts and an analysis of all of the operations within these accounts to de¬ 
termine the final deposition of all deposits. It was next necessary to analyze this 
account for the purpose of classifying that part of the income remaining within the 
depository account as to sources and purposes of expenditures. 

Much of the revenue data contained in the detailed statements appended to this 
Chapter were obtained from the records of the State Tax Commission as well as the 
Treasurer’s office. However, it was not possible to obtain any revenue analysis of the 
so-called revolving funds, nor of the operations of the depository accounts from tin- 
records of either the Auditor’s office or fhe Treasurer’s office. To secure these data it 
was necessary to examine tliie audit report of institutions now prepared by the State 
Examiner and Inspector and to visit each of the departments at the seat of the govern¬ 
ment. The problem of analyzing expenditures was not as difficult since the State 
Auditor’s office collects all warrant expenditures classified by functions and organiza¬ 
tion units for all funds, except the depository funds. 

FINANCIAL STATEMENTS 

We have referred above in general terms to the financial statements 'included in 
this report. The statements exhibited appear in the following order. 

1. Consolidated General Balance Sheet, Exhibit A 

2. Consolidated Statement of Operations of the Fiscal Year ended June 30, 1934. Ex¬ 
hibit B 

3. Condensed Comparative Statement of Receipts and Disbursements of all Funds, for 
the Fiscal Years 1933 and 1934, Classified by General Sources of Revenue and 
character of Expenditures, Exhibit C 

4. Condensed Statement of Receipts, Disbursements, and Balances of all Current Funds 
of the State Government for the Fiscal Year 1934, Classified by Treasury Accounts. 
Exhibit D 

5. Comparative Statement of Receipts of all Funds, Classified by Character and 
Sources for the Fiscal Years Ended June 30, 1933 and June 30, 1934, Schedule 1 
of Exhibit C 

6. Comparative Statement of Disbursements of all Funds for the Fiscal Years 1933 
and 1934, Classified by Character, Functions and Activities, Schedule 2 of Exhibit G 

Consolidated General Balance Sheet, Exhibit A. The data contained in this state¬ 
ment were obtained by analyzing the cash receipts and disbursements, of the state 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


315 


government and by inventorying so far as was possible the current assets and current 
liabilities of the state government as of June 30, 1934. 

The purpose of the Consolidated General Balance Sheet, Exhibit A is to exhibit 
the financial condition of the state government as a lijolding corporation. This Balance 
Sheet is classified similarly, to that of a corporation, with the exception that fixed 
property assets are not included as these data 'were not obtainable during the course 
of our survey. As at present prepared, the net result displays the net result of the 
state government. This statement sets forth that the total recorded assets of the 
state government amounted to $26,985,082.08 on June 30, 1934. This is exclusive of 
the value of lands, construction and permanent improvements, miscellaneous plant and 
equipment, and consumable supplies, on' hand as of its date. 

The cash on hand on June 30, 1934 aggregated $23,423,256.49. Of this amount 
$1,806,819.68 was sinking fund cash, and $14,132,310.09 represented county deposits, 
leaving a balance of $7,484,126.72 in expendable funds. The amount due the state 

is $33,110.48. This! represents the amount due from bankers and others for warrants 
purchased by the Treasurer for which reimbursement had not been made. The other 
current receivable accounts of the state government are not now of record. 

The total current liabilities and reserves at the close of business June 30, 1934 
aggregated $22,756,334.73. Of this amount $20,122,675.35, was represented by current 
liabilities and $2,633,659.38 by reserves. The former includes warrants and vouchers 
payable of $5,279,344.73 and the amount due county governments for the deposit of 
cash in the State Treasury of $14,132,310.09. The latter includes the reserves set 
up for undistributed! taxes, state insurance fund deposits and the like. The only figure 
included under this caption about which there is some question is the amount re¬ 
ported as undistributed taxes. This is a derived figure because it was impossible to 
completely analyze the depository accounts of the state government. Therefore, the 
sum of $2,313,268.11 reported, is an estimate rather than an amount determined upon 
the basis of a book figure. 

The total of all liabilities and reserves as) of June 30, 1934 aggregated $39,649,749.84. 
To offset these liabilities the state had current assetsl of $23,456,366.97 and booked trust 
assets of $3,529,315.11 or au aggregate of $26,985,682.08. The excess of all recorded 
liabilities of the state government over all realizable assets amounted to $12,664,067.76. 
This was the net debt of the state government on June 30, 1934. 

By reference to Exhibits A and B> it will be observed thht the balance sheet, and 
operating statement employs a separate column for each fund or similar group of 
related funds and combines these total, excluding interfund transactions, into a con¬ 
solidated total. Tin's is done for the purpose of reporting the financial condition 
of each fund and the state government as a (whole. The result shown in the 
consolidated column represents the financial position of the state government in its 
relation to the outside world. In this connection attention is called to the fact that 
the restricted receipts appropriated for the operations of the State Tax Commission 
and the repayment receipts now credited to the so-called revolving funds are included 
In these statements as general fund moneys. 

Analyzing the infcrmatiori reported on the balance sheet, the current condition of 
the operating funds of the state government as of June 30, 1934 was as follows: 


Fund 


Current Assets 


Current Liabilities Current Deficit 


General Fund 
Educational Funds 
Highway Funds 
Capital Funds 
Special Funds 
Depository Funds 


$J ,408,341.18 
189,078.65 
719,522.02 
30,854.45 
734,941.37 
18,593.809.62 


$4,214,931.11 

335,879.23 

799,368.62 

1,629.77 

258,102.42 

17,316,273.58 


$2,806.589.93 1 
146,800.58 
79,846.60 
29,224.68* 
476,838.95* 
1,277.536.04’-' 


Totals 


$21,676,547.29 


$22,926,184.73 


$1,249,637.44 


includes the General Revenue Fund, Tax Commission Fund and Revolving Funds 
other than working capital funds. 

•^Contra (in italics) 






EXHIBIT A 

CONSOLIDATED GENERAL BALANCE SHEET AS OF JUNE 30, 1934 



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318 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


Consolidated Statement of Operations for the Fiscal Year Ended June 30, 1934, 
Exhibit B. This statement is c-lassifiedi to report the operations of the several funds 
of the state government. It has for its purpose to show how the condition reported 
by the balance sheet was reached. It sets forth in summary form the financial transac¬ 
tions of the state government during the fiscal year, 1934. It reports all income , in 
comparison (with all expenditures, inclusive of all known liabilities. The income is 
subdivided to report the revenue and non-revenue earnings, and the expenditures are 
subdivided to show the cost by character and general functions of the government. 
The excess of expenditures o^er all the income of the Operating Funds in the fiscal 
year, 1934, amounted to $2,283,614.02. Deducting from this balance the current surplus 
on July 1, 1933, of $1,033,976.58, the total current deficit on June 30, 1934 amounted 
to $1,249,637.44. This is the excess of all current assets over all current liabilities 
as reported by the consolidated balance sheet, Exhibit A, item J-l. 

Like information for the general fund shows that the total revenue income dur¬ 
ing the fiscal year 1934 aggregated $0,057,822.63; that the non-revenue income amounted 
to $24,068.11 and that thje total income of the general fund during the fiscal year un¬ 
der discussion, including the restricted funds of the State Tax Commission and all 
revolving funds except working capital funds, aggregated $9,OS1,S90.74. The total op¬ 
erating expenses aggregated $11,406,651.31. Deducting this sum from the total income, 
this statement sets forth that the operating expenses exceeded the general fund in¬ 
come by $2,324,760.57. Adding the capital outlay out of the general fund during the 
fiscal year of $430,237.82, the total expenditures out of the general fund during the 
fiscal year exceeded the earned income by $2,754,998.39. Adding this excess of ex¬ 
penditures of the fiscal year to the adjusted deficit of $51,591.54 on July 1, 1033, the 
general fund deficit as of July 1, 1934 was $2,806,589.93. 


EXHIBIT B 

CONSOLIDATED STATEMENT OF OPERATIONS FOR TIIE FISCAL YEAR ENDED JUNE 30, 1934 




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ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


321 


Consolidated Comparative Statement of AH Funds, Fiscal Years 1933 and 1934, 
Exhibit C. This statement differs from the operating statement, Exhibit B, since it 
has for its purpose! to report the receipts and disbursements of the state government, 
inclusive of warrants and vouchers payable. It represents a condensed summary of 
the detailed statements or receipts (Schedule I of Exhibit C) and the detailed state¬ 
ment of disbursements (Schedule 2 of Exhibit C) presented at the end of this chapter. 

The receipts and expenditures are classified by character in order to indicate: To 
what extent governmental cost payments including capital outlays and fixed charges 
have exceeded revenue receipts; to what extent non-revenue receipts exceeded non¬ 
governmental cost payments; and, finally, the excess or deficit of all receipts over all 
disbursements including warrants payable for the two fiscal years for which the report 
is prepared. Further aid isl rendered by this statement in that it indicates the trend 
in receipts and expenditures of the two-year period. 

Reference to this statement shows thlat the revenues exceeded governmental cost 
payments in the fiscal year 1934, but that, the reverse was; true in 1933; that non¬ 
revenues exceeded non-governmental cost payments in both fiscal years; that the receipts 
exceeded disbursements in both years, but this was made possible because of the large 
deposits by county governments, part of which funds have apparently been made use 
of in temporarily financing thje operations of the state government; that the un¬ 
expended cash on hand at the end of the fiscal year 1933 amounted to $14,193,228.53 
(this includes the sum, of $9,705,520.98 of county money deposited in the State Treas¬ 
ury) ; and finally that the undisbursed balance of cash in the Treasury on June 30, 
1934, exclusive of endowment fund cash of the land office, amounted to $18,143,911.76. 
This includes the sum of $14,132,310.09 of county deposits in the State Treasury on 
June 30, 1934. These moneys as well as all other recorded liabilities are reported on 
the balance sheet as obligations of cash resources of the respective funds of the state 
government. The cash operations of the state government including warrants out¬ 
standing at the beginning and close of the fiscal year 1934 are reported in Exhibit D 
which is next discussed. 

exhibit c 

CONDENSED COMPARATIVE STATEMENT OF RECEIPTS AND DISBURSEMENTS 
OF ALL FUNDS FISCAL YEARS 1933 AND 1934 
(For details as to fund operations, see exhibit “D”) 





Fiscal 

Year 



Classification 

1933 

1934 

A. 

Receipts: 

1. Revenue Receipts: 

Taxes __ _ _ —----- — — 

Non-Taxes _ -- -- — _ — 

$19,525,167.09 
7,838,602.86 

$19,480,134.00 

11,069,008.05 



Total Revenue Receipts _ _ -- - - 

_ 27,363,769.95 

30,549,142.05 


2. 

Non-Revenue Receipts: 


175,000.00 




17.20 



Taxes Collected for Local Governments _ 

Private (Trust) Funds---- 

Public Trust Funds _ 

Other Non-revenue Receipts _ 

Transfers of Funds - 

_ _ 6,928,088.29 

_ _ 432,485.40 

6,423,872.97 
„ _ 31,236.87 

. _ 529,233.98 

10,698,170.82 

366,584.29 

4,727,884.78 

45,643.21 

1,194,763.54 



Total Non-Revenue Receipts 

14,344,934.71 

17,208,046.64 


3. 

Total Receipts 1 - 

41,708,704.66 

47,757,188.69 

B. 

Disbursements: 

1. Governmental Cost Payments : 

Administration, Operation and Maintenance _ 

Capital Outlays - 

Interest on Indebtedness _ 

__ _ 17,289,971.25 

_ 12,758,995.63 
304,113.13 

15,371,439.17 

11,857,416.58 

1,539,862.60 



Total Governmental Cost Payments - 

. _ _ 30,353,080.01 

28,768,718.35 


2. 

Non-Governmental Cost Payments: 

Redemption of Debt Obligations - 

Payment of taxes collected for Local Governments-- 

Refunds --- 

296,700.00 
_ 7,864,353.91 

. _ - 1,020,644.04 

973,500.00 

12,038,950.49 

282,614.44 


































322 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


EXHIBIT C (Continued) 




Fiscal 

Year 


Classification 

1933 

1934 


Disbursement of Private Trust Funds 

Transfers of Fun'ds 

Other Non-Govern mental Costs 

336,799.47 

529,233.98 

216,672.55 

530,362.02 

1,194,763.54 

17,596.62 





Total Non-Governmental Cost Payments __- 

10,264,403.95 

15,037,787.11 


3. Total Disbursements * 2 

40,617,483.96 

43,806,505.46 

c. 

D. 

Excess of Revenues over Governmental Costs 

Excess of Non-Revenue over Non-Governmental Costs 

_ 2,989,310.06* 

4,080,530.76 

1,780,423.70 

2,170,259.53 

E. 

F. 

Excess of All Receipts over All Disbursements 

Add: Available Cash Balance at beginning of Fiscal Year _ 

1,091,220.70 

13,102,007.83 

3,950,683.23 

14,193,228.53 

G. 

Available Cash at End of Fiscal Year _ _ - 

-$14,193,228:53 3 

$18,143,911.76 4 


Condensed Statement of Receipts and Disbursements 

and Balances of 

All Current 


Funds of the State Government, Classified by Treasury Accounts, Exhibit D. Particular 
attention is called to this exhibit because it reports all treasury transactions of the 
fiscal year 1934, classified by the present recognized groups for which an accounting 
of state moneys is now rendered. It corresponds to’ the summary statement now pre¬ 
sented in the Treasurer’s semi-annual report to the Governor. It includes, however, 
elements other than those reported by the Treasurer and also analyzes the transactions 
by general classes of funds. An examination of this statement will prove of interest 
because the operations of each of the general classes of funds within each of the 
group operations are set forth in summary form. It reports the cash on hand at the 
beginning of the fiscal year, the transactions of the fiscal year 1934, and the result¬ 
ing balance of cash at thel close of the fiscal year 1934, inclusive of certain state moneys 
not nolw deposited in the State Treasury. 

The contents of this statement supplied the basis for the preparation of the bal¬ 
ance sheet, particularly the current surplus (net cash available) at the beginning of 
the fiscal year 1934, which surplus, however, was necessarily) adjusted because of the 
failure of the accounting officer to set up liabilities of the statq government included 
within these balances, as, for example, the liabilities to counties for moneys deposited 
in the State Treasury, and liabilities of the government included within the depository 
accounts for tax collections payable to counties, private funds, and undistributed taxes. 


J For details, See Schedule 1 of this Exhibit. 

2 For details, See Schedule 2 of this Exhibit. 

includes $9,705,520.98 of county money deposited in State Treasury, 
includes $14,132,310.09 of county money deposited in State Treasury. 

*Contra (in italics) 

























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324 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


SUPPORTING SCHEDULES 

Included among the statements of this report are two schedules both of which 
supply detailed data of the cash) operations of the state government. Schedule I re¬ 
lates to receipts and Schedule 2 pertains to disbursements. 

Comparative Statement of Receipts of All Funds, Classified 1 by Character and 
Sources, Fiscal Years Ended June <30, 1933 and June 30, 1934, Schedule 1, Exhibit C. 
The information embodied in this report was compiled by analyzing the receipts of the 
state government from published reports and typewritten reports of the State Treas¬ 
urer, the State Tax Commission and the State Examiner and Inspector, and by ex¬ 
amining the records of the other departments and boards at the seat of government. 
As already stated, it was not possible to obtain the information in any one office. 

The comparative statement of receipts (Schedule 1 of Exhibit C) is presented as 
a supporting schedule to Exhibit C. It is classified to report receipts by character, 
that is “Revenue Receipts” and “Non-Revenue Receipts” and the items coming within 
each of these classifications is given in detail by sources from which derived under 
each character heading. 

Revenue receipts are further classified to report the amounts received through 
tax measures as distinguished from all other miscellaneous receipts such as licenses 
and permits, fees, subventions and grants from the federal government and the political 
subdivisions of the state, and rentals and sales of services. Attention is called par¬ 
ticularly to the large amount of money received from what is here designated as 
“sales of services,” {which are now funded to revolving funds. These are largely re¬ 
payments and are ordinarily credited to the appropriations of the departments collecting 
these moneys, to supplement the appropriations made by the legislature, thereby re¬ 
quiring the same accounting as appropriated funds. 

The non-revenue receipts consist of all items which create obligations or offset 
expenditures without effecting any change in the financial condition of the state. This 
classification consists of borrowings, taxes collected for local governments, private 
funds, and public trust funds. 

A two-fold purpose Is served by this table. The! first is to indicate trends in re¬ 
ceipts over a period of years as a means of judging the effectiveness of revenue meas¬ 
ures. The second is to indicate the classification that should be adopted in the ac¬ 
counting procedure of the state government. Due to the fact that thje state has not 
imposed a uniform classification upon the departments and institutions it is possible 
that some of the allocations made by us, other than taxes, may 1 not be absolutely ac¬ 
curate. 

Since this statement and the statement of expenditures will be examined only 1 by 
those who are interested! in the detail of Exhibit 0, no attempt is here made to in¬ 
terpret the report. 

Comparative Statement of Disbursements of All Funds for tlile Fiscal Years 1933 
and 1934, Classified by Character, Functions, and Activities, Schedule 2, Exhibit C. 

This statement supplies the detail of all disbursements reported in the expenditure 
section of the Condensed Comparative Statement of Receipts and Disbursements, Ex¬ 
hibit C. It reports (1) all governmental, cost payments, classified by governmental 
functions and' by activities performed under each function, and (2) all non-govern¬ 
mental cost payments classified according to the purpose for which such expenditures 
were made. 

In addition to furnishing information relative to thje actual cost of government 
in each classification thereunder, this statement indicates the type of information which 
may be obtained and the type of statement which it is possible to prepare! in a uniform 
system of accounting and reporting expenditures. The classification here used iis that 
recommended by the United States Bureau of the Census for reporting statistics of 
states. 

This statement aims to analyze expenditures by character, in order to show under 
governmental cost payments, the actual cost of operating the government, including 
capital outlays and interest on indebtedness as distinguished from non-governmental 
cost payments, which represent the liquidation c-f indebtedness or offsets to receipts 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


325 


which do not increase surplus. Under the first category, disbursements are further 
analyzed to report the actual cost of performing- each function of government and of 
each activity involved in the performance of the function. If a classification of this 
nature is finally adopted by the state it must be recognized that the expenditures of 
certain departments and establishments are divided among several functions; and pro¬ 
vision should be made in such classification for the allocation of the expenditures of 
a given government agency according to the functions performed. For example, the 
A. and M. College expends money under the function of “Development and Conservation 
of Natural Resources” (agricultural) and “Education”; and those of the State Uni¬ 
versity between “Charities, Hospitals and Corrections,” and “Education.” 

Comparing the cost of the several functions for the two-year period on a per¬ 
centage basis, it is found that highways absorbed over 51 per cent of total governmental 
cost payments in 1933 and 46.4 per cent in 1934. Education ranks second with 19.8 
per cent in 1933 and 16.7 per cent in 1934, while the functions designated “Charities, 
Hospitals, and Corrections” rank third with an average of over 12 per cent in 1933 
and 15.3 per cent in the fiscal year 1934. 

The following table sets forth the proportion of governmental cost payment for 
each state government function during the fiscal year 1933 compared with 1934. 

PERCENTAGE DISTRIBUTION OP EXPENDITURES BY GOVERNMENTAL 
FUNCTIONS, 1933 AND 1934 


Fiscal Year 

Function 1933 1934 


General Government _ 5.4 5.2 

Protection to Persons and Property _ 3.3 3.3 

Conservation of Health and Sanitation _ 1.7 1.4 

Development and Conservation of Natural Resources _ 2.4 4.3 

Highways _ 51.1 46.4 

Charities, Hospitals and Corrections _ 12.3 15.3 

Education ___ 19.8 16.7 

Miscellaneous _._ 2.9 2.1 

Interest__ 1-1 5.3 

Total _-1 1C0.0 100.0 


CONCLUSIONS 

Considering the numerous sources from which these financial data were obtained, 
the lack of uniformity of classification of receipts and expenditures, and a lack of 
financial reports, the results reported may be summarized as follows: (1) For all 
practical purposes the statement of operations for the fiscal year 1934. Exhibit B, 
and the statement of receipts and expenditures reported] in Exhibit O, and Schedules 
1 and 2 of this Exhibit are correct and serve the purpose fob which they are intended 
with the possible exception of the operations of the depository funds>, the receipts and 
expenditures of which could not be classified with certainty because of the lack of 
detail records. 

(2) The Balance Sheet as of Jun'ie 30, 1934, Exhibit A, serves the purpose oil in¬ 
dicating the type of statement which should bq prepared to report the financial con¬ 
dition of each fund, each group of related funds, and the state government as a 
whole. It does not, however, reflect all information with regard to the true financial 
condition at that date, since the information with regard to certain liabilities and 
liability reserves, and the assets and liabilities of endowment funds under the juris¬ 
diction of the land office were not readily available for incorporation in the balance 
sheet. 

(3) The data presented by Exhibit D, the Condensed Statement of Receipts, Dis¬ 
bursements, and Balances, is correct for all finances over which the State Auditor and 
State Treasurer exercise jurisdiction, since it deals with totals only and makes no at¬ 
tempt to analyze receipts and expenditures of the period. 

No recommendations are included in this chapter as the information presented is 
purely informative in character and has for its purpose primarily to report the esti¬ 
mated condition of the state government as of June 30, 1934, and to supply analytical 
information of the operations of the state government. 


















326 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


I. 


SCHEDULE 1 OF EXHIBIT C 

COMPARATIVE STATEMENT OF RECEIPTS OF ALL FUNDS, CLASSIFIED BY 
CHARACTER AND SOURCES—FISCAL YEARS 1933 AND 1934 


Character and Source 


Revenues 

A. Tax Revenues 

1. Ad valorem Tax _ 

2. Income Tax _ 

3. ^ Inheritance Tax _ 

4. Corporation License Tax _ 

5. Gross Receipts Tax _ 

6. Sales Tax _ 

7. Beverage Tax _ 

8. Gasoline Tax _ 

9. Motor Vehicle License _ 

10. Motor Carrier (Mileage) Tax _ 

11. Gross Production Tax _ 

12. Petroleum Excise (Proration) _ 

13. Insurance: 

a. 2% Tax on Premiums _ 

b. %% Fire Marshal Tax_ 

14. Feed Tax _ 

15. Fertilizer Tax _ 

16. Oleomargarine Tax _ 

17. Undistributed _ 

Total Tax Revenues _ 

# 

B. Non-Tax Revenues : 

1. Licenses and Permits : 

a. Insurance Agents License _ 

b. Securities Dealers License _ 

c. Securities Agents License _ 

d. Cotton Gin License _ 

e. Motor Bus License _ 

f. Dairy License _ 

g. Beverage License _ 

h. Insurance Companies License _ 

i. Hotels, Restaurants, etc. License _ 

j. Fee Charging Employment Agencies License 

lr. Charters ___ 

1. Fur Dealer License _ 

m. Notary Commissions _ 

n. Hunting and Fishing Licenses _ 

o. Traffic Permits _ 

Total—Licenses and Permits _ 

2. Fees: 

a. Land Office _ 

b. State Auditor _ 

c. Clerk of Supreme Court _ 

d. Secretary of State : 

1. Appointment of Agent _ 

2. Certified Copies _ 

3. Requisitions _ 

4. Seals _ 

5. Recording _ 

6. Trade Marks _ 

7. Filing Bonds _ 

8. Miscellaneous _ 

Total—Secretary of State _ 

e. Highway Department: 

1. Auto Titles _,_ 

2. Public Utilities Inspection _ 

Total—Highway Department _ 

f. State Board of Health: 

1. Birth and Death Certificates _ 

2. Miscellaneous _ 

Total—State Board of Health _ 

g. Insurance Board: 

1. Filing Annual Statements _ 

2. Miscellaneous-Insurance Board _ 

3. Miscellaneous-Insurance Commissioner 

Total—Insurance _ 



Fiscal 

Year 


1933 

1934 

% 

4,020,200.66 

$ 2,668,628.45 


1,248,802.11 

827,847.60 


627,762.42 

144,511.60 


758,758.22 

677,246.37 


45,180.19 

10,085.97 


1,092.10 

1,089,793.14 



160,937.71 


7,335,531.44 

8,020,751.24 


1,983,689.68 

1,310,561.30 


211,097.19 

523,215.52 


2,632,533.36 

3,200,037.32 


14,054.72 

215,751.97 


590,451.97 

548,250„25 


16,858.33 

14,854.45 


38,460.25 

48,653.76 


691.25 

1,659.00 


3.20 




17.348.35 

$19,525,167.09 

$19,480,134.00 

% 

66,573.23 

$ 60,549.50 


1,555.00 

20.00 


2,260.00 

3,786.00 


661.50 

846.50 


14,695.00 

62,473.73 


4,663.00 

7,991.06 



16,489.50 


58,677.00 

55,142.00 


12,390.23 

14,203.65 


200.00 

200.00 


36,326.09 

40,345.67 


6,275.00 

7,850.00 


4,356.00 

6,327.00 


140,055.50 

158,388.75 


20.00 

— 


348.707.55 

434,613.36 


22,197.35 

26,860.04 


726.10 

406.92 


29,004.84 

25,530.81 


232.00 

227.00 


719.70 

665.89 


360.46 

410.00 


2,091.00 

2,481.00 


5,075.25 

5,038.15 


180.00 

314.00 


38.00 

114.00 


618.13 

1,039.75 


9,314.54 

10,289.70 


166,681.72 

234,596.44 


1.089.98 

857.76 


167,771.70 

235,454.20 


230.25 

379.60 


2,946.25 



3,176.50 

379.60 


555.00 

575.00 


2,287.07 

3,642.84 


2,442.25 

2,183.50 


5,284.32 

6.401.34 



















































































ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


327 


SCHEDULE 1 OF EXHIBIT 

Character and Source 

h. Corporation Commission: 

1. Well Log Fees _ 

2. Oil and Gas Inspection _ 

3. Miscellaneous __ 

Total—Corporation Commission _ 

i. Board of Agriculture : 

1. Nursery Inspection _ 

2. Seed Inspection _ 

3. Marketing Inspection _ 

4. Miscellaneous _*_ 

Total—Board of Agriculture _ 

j. Livestock Registry Board-Registration _ 

k. Securities Commission: 

1. Registration by Notification _ 

2. Registration by Qualification _ 

3. Miscellaneous _ 

Total—Securities Commission _ 

l. Mining Board-Inspection and Certificates _ 

m. Examination Fees: 

1. Board of Accountancy _ 

2. Board of Optometry _ 

3. State Bar _ 

4. Board of Architects Examiners _ 

5. Board of Barbers Examiners _ 

6. Board of Pharmacy _ 

7. Board of Dental Examiners _ 

8. Board of Chiropractic Examiners _ 

9. Board of Osteopathy _ 

10. Board of Medical Examiners _ 

11. Board of Veterinary Examiners _ 

12. Board of Nurse Examiners _ 

13. Board of Embalmers _ 

Total—Examination Fees _ 

Total—Fees _ 


C — Continued 


1933 

1934 

7,576.88 

7,473.22 

243,256.68 

258,620.00 

1,874.10 

1,270.05 

252,707.66 

267,363.27 

1,825.97 

1,940.87 

502.26 

585.55 

3,381.25 

2,130.31 

1,865.95 

961.50 

7,575.43 

5,618.23 

1,511.00 

2,321.00 

456.13 

2,020.00 

4,205.37 

1,750.00 

1,205.00 

4,661.50 

4,975.00 

162.00 

113.50 

150.00 

1,325.00 

1,225.00 

1,286.38 

21,803.50 

29,006.50 

885.00 

979.85 

14,889.60 

19,698.78 

20,889.00 

24,647.50 

1 

2,782.50 

825.00 

550.00 

830.00 

385.00 

4,950.00 

5,160.00 

180.00 

309.00 

4,300.43 

4,534.40 

2,323.00 

2,415.00 

73,250.53 

93,079.91 

$ 577,343.47 

$ 678,793.52 


3. Special Assessments: 

a. Building and Loan Auditor_ 

b. Banking Commissioner _ 

Total—-Special Assessments _ 

4. Fines and Forfeits : 

a. Fines: Game and Fish Commission 

b. Fines: Proration Corporation_ 

c. Gasoline Tax Penalties _ 

d. Gross Production Tax Penalties _ 

e. Income Tax Penalties _ 


$ 17,616.20 $ 21,792.00 

15,982.31 17,216.10 

.$ 33,598.51 $ 39,008.10 


$ 916.80 


8,224.65 

30,498.21 

4,984.71 


$ 6,807.75 

1,021.00 
10,229.67 
39,433.83 
3,008.52 


Total—Fines and Forfeits 


$ 44,624.37 $ 60,500.77 


5. Subventions and Grants—Federal Government: 

a. Highway Department: 

1. Federal Funds ___ 

2. Emergency Federal Funds _ 

3. National Industrial Recovery Highway . 

Total—Highway Department _ 

b. Oklahoma A. and M. College: 

1. Morrill-Nelson Act _ 

2. Hatch Act _ 

3. Adams Act _ 

4. Smith-Lever Act _ 

5. Purnell Act _ 

6. Capper-Ketcham Act _ 

7. Federal Co-operative Act _ 

Total—A. and M. College _ 

c. National Recovery Work Relief _ 

d. Golored A. and N. University - 

e. Murray Agricultural College _ 

f. Vocational Education _ 

g. University Hospital _ 

h. Oklahoma State Employment Service _ 


$ 2,136,625.40 $ 950,263.28 

1,184,770.09 1,672,730.88 

_ 4,132,907.97 


3,321,395.49 

6,755,902.13 

45,000.00 

45,520.43 

15,000.00 

15,000.00 

15,000.00 

15,000.00 

175,971.67 

175,971.67 

60,000.00 

60,000.00 

34,568.90 

34,568.90 

28,000.00 

28,000.00 

373,540.57 

374,061.00 


_ 46,096.23 

5,000.00 5,000.00 

3,906.15 1,728.92 

198,957.54 164,860.39 

_ 14,764.85 

_ 8,899.00 


*Not available for 1933. 
























































































328 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


SCHEDULE 1 OF EXHIBIT C—Continued 


Character and Source 

i. Union Soldiers’ Home _._ 

j. Oklahoma Forestry Commission _ 

k. Wichita Forest Reserve _ 

l. Ouachita Forest Reserve _ 

Total — Subventions and Grants—Federal Government— 

6. Subventions and Grants — Local Government: 

a. County Funds Transferred : 

Highway Department _ 

7. Donations and Gifts — (Private 
Persons and Corporations: 

a. Vocational Education_ 

b. General Education Board _ 

c. Jeanes Foundation _ 

d. Julius Rosenwald Foundation _ 

e. John F. Slater _ 

Total — Donations and Gifts _ 

8. Interest, Premiums and Discounts: 

a. No. 1, Interest: State Treasurer_ 

b. No. 2, Interest: State Treasurer _ 

c. Interest Earned Transferred: Highway Department 

d. Interest on Balances: Vocational Board _ 

e. Interest on Balances: Union Soldiers’ Home_ 

Total — Interest, Premiums and Discounts_ 

9. Rentals: 

a. Section 33, -Greer County Land_ 

b. Section 13, Lands _ 

c. New College Lands : 

1. University _ 

2. University Preparatory School_ 

3. Normal Schools _ 

4. C. A. and N. University_ 

5. A. and M. College _ 

Total — New College Lands _ 

d. Section 33, except Greer County_ 

e. Oklahoma Forestry Commission _ 

f. Board of Affairs _ 

Total—Rentals _ 

10. Sales of Services : 
a. Educational: 

1. Schools of Higher Learning: 

a. General: 

1. University of Okla. _ 

2. 0. C. W. _ 

3. C. A. and N. U. _ 

Total—General _ 

b. Technical: 

1. Medical School _ 

2. O. A. and M. C. _ 

3. Pan. A. and M. C. _ 

Total—Technical _ 

c. Teachers: 

1. Ctl. St. N. C. _ 

2. E. Ctl. St. N. C. _ 

3. N. E. St. T. C. _ 

4. N. W. St. T. C. _ 

5. S. E. St. T. C. _1_ 

6. S. W. St. T. C. _ 

Total—Teachers _ _ 

Total—Schools of Higher Learning _ 

2. Junior Colleges: 
a. General: 

1. Eastern 0. J. C. _._ 

2. N. E. 0. J. C. _ 

3. Univ. Prep. School _ 


1933 

1934 

5,869.G5 

1,121.27 

15,969.72 

13,240.56 

693.42 

1,011.61 


148.40 

$ 3,925,332.84 

.$ 7,386,834.35 


$ 

339,838.40 

$ 

42,076.31 

$ 

1,355.03 

$ 

4,529.28 


29,651.00 

25,233.34 


2,825.00 


1,240.00 




100.00 




900.00 

$ 

33,831.03 

$ 

32,002.62 

$ 

129,816.45 

$ 

48,104.35 


95,249.78 


111,366.95 


20,443.06 


148.98 


687.89 




62.71 



$ 

246,259.89 

$ 

159,620.28 

$ 

5,844.28 

$ 

12,386.22 


165,854.70 


285,172.49 

* 

22,909.78 


33,411.89 


11,815.40 


13,744.66 


22,469.75 


19.843.66 


7,045.62 


12,187.25 


21,490.90 


27,518.37 


85,731.45 


106,705.83 


488,525.90 


131,250.00 


1,550.91 


2,020.99 


820.00 


210.00 

$ 

748,327.24 

$ 

537,745.53 


$ 

342,620.90 

36,375.66 

49,520.07 

$ 

240,956.74 

101,117.71 

46,156.12 


428,516.63 


388,230.57 


19,697.86 

280,312.72 

20,958.71 


19,638.39 

345,792.14 

22,388.56 


320,969.29 


387,819.09 


28,340.00 
17,21 .00 
22,989.98 
28,489.43 
29,257.60 
11,599.55 


20,160.96 

14,918.99 

21,045.25 

24,208.79 

36,425.84 

12,836.15 


137,892.56 


129,595.98 

$ 

887,378.48 

$ 

905,645.64 

$ 

956.91 

$ 

130.00 

4,261.63 


12,921.48 


9,907.56 


13,878.39 14,299.19 


Total — General 

















































































ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


329 


Character 

SCHEDULE 1 OF EXHIBIT 

and Source 

b. Technical: 

1. Cameron A C 

C—Continued 

1933 

18,756.52 

6,172.00 

24,128.03 


1934 

20,515.99 

3,167.45 

22,981.62 


2. Connors A. C. . . 

3. Murray A. C, 




Total—Technical 


49,056.55 


46,665.06 


Total—Junior Colleges 

- $ 

62,934.94 

$ 

60,964.25 

3. 

Schools for the Afflicted: 
a. School for the Blind 

$ 


$ 

1.134.16 

1,416.47 


b. School for the Deaf 


1,340.82 



Total — S. for the Afflicted 

- - $ 

1.340.82 

$ 

2,550.63 

4. 

Board of Education: 
a. Teachers Examination Fund 

- $ 

2,806.00 

$ 

2,018.00 

Total—Educational _ _ _ 

- $ 

954,460.24 

$ 

971,178.52 


Board of Public Affairs Institutions : 

1. Tubercular Sanatoria: 

a. E. 0. T. San. _ 

b. W. O. T. San. _ 

c. Soldiers’ T. San. __ 


3. 


1.552.13 

2.801.13 
37,429.71 


1,063.04 

3,653.25 

3,368.00 


Total—Tubercular Sanatoria 

41,782.97 

8,084.29 

Care of Children : 

a. W. Okla. Orphans’ Home 

b. Whitaker Orphans’ Home 

503.35 

374.03 

1,328.47 

100.00 

Total — Care of Children __ 

877.38 

1,428.47 

Care of Blind, Deaf and Mute: 

a. Deaf, Blind and Orphans Institute for Colored 

5.55 

483.05 


4. Hospital: 

a. Insane: 

1. E. Okla. Hospital _ 

2. Ctl. Okla. Hospital _ 

3. W. Okla. Hospital_ 

Total — Insane _ 

b. Feeble Minded : 

1. Institute for Feeble Minded_ 

Total — Hospital -- 

5. Corrections: 

a. For Adults:- 

1. State Penitentiary _ 

b. For Minors: 

1. Training School for White Boys 

2. Training School for Negro Boys 

3. State Reformatory _ 

Total — for Minors _ 

Total Corrections _ 

6. Soldiers’ Homes: 

a. Confederate Soldiers’ Home - 

b. Union Soldiers’ Home - 

Total—Soldiers’ Homes - 

Total — Board of Public Affairs Institutions 

c. Geological Survey - 

d. University Hospital - -- 

e. A. and M. Experimental Sta. - 

Total—Sales of Services - 

11. Other Non-Tax Revenues : 

a. Lost Books Paid for: State Library- 

b. Water Rights and Certified Copies: 

Conservation Comm. - 

c. Sale of Veterinary Rules and Regulations: 

Bd. of Agriculture - 

d. Sale of Materials: Bd. of Affairs- 

e. Sale of Equipment: Bd. of Affairs - 

f. Miscellaneous: Bd. of Affairs - 

g. Miscellaneous: Okla. Tax Com. - 



9,049.07 

32,290.76 

3,536.70 

9,592.13 

20,097.10 

6,958.94 


44,876.53 

36,648.17 


2,275.66 

2,967.01 


47,152.19 

39,615.18 


284,784.83 

390,887.71 


1,953.17 

335.79 

22,699.57 

2,522.70 

191.00 

50,588.13 


24,988.53 

53,301.83 

$ 

309,773.36 

$ 444,189.54 

$ 

2,839.54 

142.10 

$ 2,891.71 

$ 

2,981.64 

$ 2,891.71 

$ 

402,573.09 

$ 496,692.24 

$ 

404.10 

144,508.99 

17,964.10 

$ 501.70 

166.020.56 

$ 

1,519,910.52 

$ 1,634,393.02 


313.72 

268.23 


88.15 

23.55 


189.60 

173.53 

180.75 

50.00 

83.20 


66.25 

• 


2,243.63 

28,767.84 



















































































330 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


II. 


SCHEDULE 1 OF EXHIBIT C—Continued 


Character and Source 

h. Miscellaneous: Fish and Game Commission 

i. Miscellaneous: Highway Dept. ___ 

Total — Other Non-Tax Revenues _ 

Total Non-Tax Revenues _ 

Total Revenues _ 

Non-Revenue Receipts: 

A. Debt Obligations: 

1. Sale of 1934 A. and M. Dorm. Bonds_ 

2. Sale of 1934 0. C. W. Dorm. Bonds_ 

Total — Debt Obligations _ 

B. Sale of Public Lands: 

1. Payton Aylesworth Prison Farm _ 

C. Collections Allocated to Local Governments : 

1. Ad valorem Taxes _ 

2. Income Tax _ 

3. Sales Tax _ 

4. Beverage Tax _ 

5. Beverage License_ 

6. Gasoline Tax _ 

7. Motor Vehicle License _ 

8. Gross Production Tax ___ 

9. Insurance Tax to Firemen’s Pension Fund_ 

Total — Collections Allocated to Local Governments 

D. Special and Miscellaneous Non-Revenue Receipts: 

1. Accrued Interest on Bonds Sold: 

a. 1934 A. and M. Dormitory Bonds_ 

b. 1934 0. C. W. Dormitory Bonds_ 

Total-Accrued Int. on Bonds Sold_ 

2. Refund of Payments _ 

3. Refund Vouchers Cancelled _ 

4. Escheated Funds_ 

5. Deposits in Escrow _ 

6. Miscellaneous _ 

Total—Special and Miscellaneous_ 

E. Private Trust Funds : 

1. Public Elections _ 

2. W. Oklahoma Tubercular Sanatorium _ 

3. Washita Conservancy _ 

4. University Hospital _ 

5. Central Oklahoma Hospital _ 

6. Eastern Oklahoma Hosptial_ 

7. Western Oklahoma Hospital _ 

8. State Penitentiary _ 

9. State Reformatory _ 

10. Training School for White Boys_: 

11. Industrial School for Girls _ 

12. State Text Book Fund_ 

13. University of Oklahoma _ 

14. Oklahoma College for Women_ 

15. Oklahoma A. and M. College_ 

16. Murray A. and M. College_ 

17. School for the Deaf_ 

18. School for the Blind- 

19. Treasury Interest Account — Federal Government 

20. Treasury Interest on Federal Funds _ 

21. Other - 

Total — Private Trust Funds _ 

F. Public Trust Funds: 

1. County Treasurers’ Deposits _ 

I 

2. Insurance Fund: 

a. Earned Premiums _ 

b. Guaranty Deposits _ 


1933 1934 

914.61 919.86 

17,013.08 32,953.22 


$ 20,829.04 $ 63,420.18 


$ 7,838,602.86 $11,069,008.05 


$27,363,769.95 $30,549,142.05 


$ 100 , 000.00 

75.000.00 


$ 175,000.00 


$ 

17.20 


$ 

685,182.23 

651,798.90 

$ 466,066.94 

902,068.42 
2,735,061.87 
225,581.29 
313,300.50 
2,499,549.03 

1.737.748.40 

1.638.674.40 
180,119.74 






2,904,558.07 

1,312,128.94 

1,187,528.22 

188,891.93 

$ 

6,928.088.29 

$10,698,170.82 


$ 1,333.33 

1,250.00 

2,583.33 


20,786.88 

24,077.90 



751.08 


706.38 

1,027.06 


8,724.33 

16.666.30 


.1,019.28 

537.54 

$ 

31,236.87 

$ 45,643.21 

$ 

2,857.76 

$ 750.00 


1,206.16 

1,368.66 


2,846.60 

3,466.75 


13,078.53 

18,634.02 


17,509.11 

12,745.53 


3,322.23 



4,851.44 

3,458.05 


97,214.33 

105,766.53 


12,121.44 

11,064.72 


971.78 

1,676.42 


464.99 

614.02 


55,000.00 



62,264.79 

86,755.83 


31,990.29 

27,968.40 


65,655.57 

54,144.84 


310.47 



1,968.59 

1,816.75 


1,016.26 



57,402.16 

31,890.76 



1,097.33 


432.90 

3,365.68 

$ 

432,485.40 

$ 366,584.29 

$ 

6,423,872.97 

$ 4,426,7S9.11 



190.881.74 



110,213.93 

- - - 301,095.67 

$ 

6,423.872.97 

$ 4,727,8S4.7S 


Total—Insurance Fund 
Total—Public Trust Funds 








































































































ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 331 


SCHEDULE 1 OF EXHIBIT C—Continued 


Character and Source 
G. Transfers Between Funds: 

1. Public Building Bond Sinking Fund from P. B. Fund 

2. 1913 Funding Bond Sinking Fund from General Fund 

3. Sub-Penitentiary Special Fund from Penitentiary W. 

C. (Revolving) Fund___ 

4. Governor’s Relief (Depository) from General Fund_ 

5. Highway Construction and Maintenance Fund from 

Title Division _ 

6. A. and M. Dormitory Sinking Fund from 1 

Depository Account_ 

7. 0. U. Dormitory Sinking Fund from Dep. Account_ 

8. 0. U. Infirmary Sinking Fund from Dep. Account_ 

Total Non-Revenue Receipts _ 


1933 

1934 

$ 143,750.00 

150,835.00 

$ 129,399.92 

255,011.00 

150,000.00 

20,000.00 

150,000.00 

381,575.40 


202,000.00 

22,100.00 

32,148.98 

32,084.45 

34,552.77 

10,400.00 

10,140.00 

$14,344,934.71 

$17,208,046.64 

$41,708,704.66 

$47,757,188.69 


Total Receipts: All Funds 















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CHAPTER XIX 


STATE PURCHASING, CONTRACTING AND CUSTODY 

In exercising control over governmental expenditures and in initiating and carrying 
out programs of economy and efficiency, careful attention should be given to the methods 
employed in governmental purchasing and contracting and to the facilities for taking 
proper care of state-owned property. This 1 is apparent when it is realized that almost 
one-half of all governmental costs are incurred through purchase of supplies, materials, 
equipment, land, and buildings, and the contracting for structures and permanent im¬ 
provements, heat, light, power, and repairs. It is an interesting fact that practically 
every governmental body which hasi found it necessary to reduce expenditures has at¬ 
tempted to do so by reducing salaries of officers and employees, while little thought 
apparently has been given 1 to the economies that might be effected by the centralization 
of purchasing agencies, proper standardization of specifications, and tested procedures 
,in the estimating of future needs, and in the submitting and awarding of bids on con¬ 
tracts. 

The purpose of this chapter is to discuss the agencies of the state government of 
Oklahoma which are authorized to purchase and contract, the general procedure em¬ 
ployed by such agencies, the need for a central purchasing department, and the cus¬ 
tody of state-owned property, and to make certain recommendations with regard to 
these subjects. 


PURCHASING AND CONTRACTING 

Authority to purchase, or contract for the purchase of supplies, materials, equip¬ 
ment, land, and buildings, hud to contract for services such as heat, light, water, etc., 
like other phases of) financial management, is highly decentralized in Oklahoma. The 
present discussion of the purchasing procedure and of the agencies authorized to pur¬ 
chase is subdivided as follows; 

1. Purchase of supplies, equipment, postage, telephone and telegraph service, fuel, light¬ 
ing and repairs of all departments and establishments at the seat of government, in charge 
of the State Board of Public Affairs or of the individual departments and establishments. 

2. Contracting for printing and binding and the purchase of printing supplies, which 
are in charge either of the State Board of Public Affairs or of the individual departments. 

3. Purchasing and contracting for institutions directly under the State Board of Pub¬ 
lic Affairs, done by the Board and by each institution. 

4. Purchasing and contracting for educational institutions, which are done by the 
State Board of Agriculture, the State Board of Public Affairs, and by each institution. 

5. Purchasing and contracting for highway construction and maintenance, done by the 
State Highway Commission. 

6. Revolving fund purchases, which are made by state institutions independent of the 
State Board of Public Affairs. 

Purchases at the Seat of Government. Article 7 of Chapter! 20 of the Statutes, 1031, 
sets out the duties of the State Board of Public Affairs. Section 3572 provides that the 
Board ‘‘shall contract for, purchase and acquire all furnishings, furniture and sup¬ 
plies of every kind or description for the use of the state or its officers, or the support 
of the several state institutions, including printing, stationery, fuel, tools, implements, 
furniture, books, food, clothing and medical supplies, where the law requires the state 
to furnish the same.” 

Section 3575 provides that: 

All duties prescribed in this article, which are now performed by or vested in any other 
board, officer or other authority, are hereby vested in and shall be performed by said state 
board of public affairs in the same manner as the law requires such other boards, officers 
or authorities to perform them. All laws for the control of such other boards, officers or au¬ 
thorities for the'performance of the duties mentioned herein shall apply to and control such 
state board of public affairs while engaged in the performance of the same duties. 

In addition, Section 5365 of the Statutes, 1931 provides that no appropriation made 
for certain penal and eleemosynary institutions shall be available to any of the in- 


340 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


stitutions named 'in Section 5304 for the purchase of supplies, unless the requisitions 
made by the institutional authorities are first approved by the Board of Public Affairs. 

These three sections imply that it was the purpose of the legislature to establish 
a central state purchasing department. As a matter of practice, however, the Board 
purchases only those supplies which may be requisitioned of it by the spending agencies. 
Practically every agency at the seat of government including the State Auditor and 
the other elected officials, make purchases independently of the Board of Public Af¬ 
fairs. This is possible at the present time because of the lack of purchase control 
procedure. If 1 the State Auditor, for example, adopted the procedure of requiring the 
Board to supply it :withj a copy of all purchase orders issued, and if the State Auditor 
would refuse to approve any claims for payment for which orders were not issued by 
the board, it would force the heads of the departments and establishments to place 
their orders with or through the central purchasing department. 

State Printing and Binding. Section 3600 of the Statutes abolished the office of 
State Printer and assigned these duties to the State Board of Public Affairs. This 
section provides that the Board “shall supervise and contract for all public printing 
and binding authorized by the Legislature, for the Governor, Supreme Court, and the sev¬ 
eral state institutions, state officers, or any state board 1 or commission created under the 
laws of the state. Contracts for such printing and binding shall be let under the same 
terms and conditions as other contracts: for state supplies are let ... in the manner 
provided by law.” Section 3598 provides that all contracts for printing and binding in 
excess of $200 shall be publicly let by competitive bid after due advertisement. 

The purchase of printed forms and the printing of reports and other documents 
are largely centralized but, although the expenditure document forms are more or 
less standardized, these forms are not bought in large quantities, stocked, and issued 
as needed. Each organization unit places its requisitions for the quantities needed 
and the Board places individual orders at retail prices. If all such requirements were 
pooled each quarter and were bought in large quantities, a considerable saving would be 
realized in the purchase of printed forms. In the course of our survey it was found that 
a number of the departments at the seat of government, headed by elected officials and 
appointed officials operating under special funds, purchase printing and printed forms 
independently of the State Board of Public Affairs. The other printing and publi¬ 
cation work done, without reference to the Board, relates to the publication of pam¬ 
phlets and the printing of forms in the printing plants' of the state institutions. 

The printing purchased through the Board is not always let by contract, but upon 
the basis of cost plus 40 per cent as provided under the Franklin Code. Printing is 
advertised for only occasionally; and when this procedure is employed it has been 
the practice in the past to distribute the work among two or more bidders. 

Board of Affairs Institutions. The procedure adopted with reference to purchases 
for the eleemosynary and penal institutions directly under the Board may be divided 
into three classes: First, those purchases advertised and contracted for by the Board; 
second, those purchases made by the institutions without authority of the Board and 
validated upon presentation of claims for approval and payment; an 1 third those 
purchases made locally by the institutions under “Standing Authority Orders.” 

The first type relates to the purchase of groceries, meats, dry goods, shoes and 
bread. These are advertised 1 for each quarter, based upon the estimates of requirements 
submitted by those agencies purchasing through the central office. In addition, the Board 
also entei s into conti act for the purchase of tires and tubes, drugs, lamps and ammonia. 
It does not contract for stationery and office supplies, such as pens, pencils, erasers, clips 1 , 
typewriter ribbons, stencils, mimeograph paper, carbon paper and the like. These are pur¬ 
chased in the open market each time a requisition is made upon the Board for such 
supplies. 

The second type relates to those purchases made by institutions without first ob¬ 
taining- authority from the Board. A number of eleemosynary institutions make frequent 
purchases of this kind. These purchases are validated upon receipt of claims bv the/ 
preparation of a blanket authority order. 

The third type relates to those purchases made by the institutions under what 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


341 


are known as “Standing Authority Orders.” These orders are issued, as a rule, for 
a lump sum amount. A separate authority order is issued for each class of supplies or 
equipment to be purchased. The lump sum authorized depends upon the amount of 
the appropriation, but they range from $1 to $25,000. The stat^ penitentiary receives 
the greatest number of such orders and extends practically all of its material and sup¬ 
ply appropriations under standing oi'ders. For example, from July 1, 1934 to Jan¬ 
uary 25, 1935, it had received 46 of these orders ranging from $65.26 to $25,000, ag¬ 
gregating $176,331. The other penal and eleemosynary institutions follow this same 
procedure. The State Training School at Pauls Valley land the Girls Industrial School 
do the bulk of their purchasing under validating and standing orders, while the other 
Institutions place most of their orders directly with the Board for specific items as 
needed. 

All of the requisitions, purchase orders, and claims approved by the Board are 
recorded in detail in a large minute book. Much of this work is wholly necessary as 
it duplicates the purchase and voucher records maintained by the purchasing and 
claims divisions. 

In addition to the purchase of articles and supplies for state departments and 
institutions, Section 3571 of the Statutes, 1931, gives the Board power to negotiate and 
enter into all construction contracts, except those contracts for the construction of 
building and improvements of institutions under the jurisdiction of the State Board 
of Agriculture. These contracts are let by that Board. All contracts are let to the 
lowest responsible bidder, but no contracts are let until plans and specifications have 
been drafted by a competent architect and the cost thereof is within the limits of the 
appropriation provided by the legislature. 

A comparison of the prices paid by the institutions: purchasing through or under 1 
the authority of the State Board of Public Affairs is given below for a number of 
items for which comparisons were available at the time of our survey. These are: 


_Purchased_ 

Commodity Under Contract Under Standing Orders 


Gasoline, gallon _ 

Tires, 6.00 x 18 _ 

Tires, 5.25 x 17 - 

Tubes, 6.00 x 18 - 

Tubes, 5.25 x 17 - 

Faber pencils, dozen _ 

Spencerian pen points, gross — 
Black typewriter ribbons, dozen 

Perma carbon paper - 

Rubber bands, No. 16, gross — 

Gem clips, 10 M - 

No. 10 canned tomatoes, dozen 
Dried peaches, cwt. - 



$ 0.09 

$10.11 

15.55 

. 8.13 

13.15 

. 1.61 

2.90 

1.27 

1.95 

. 0.70 

0.83 

. 1.00 

1.75 

. 2.50 

9.00 

. 1.20 

3.60 

. 1.00 

1.75 

. 3.00 

4.00 

. 3.65 

5.50 

. 9.38 

11.00 


Educational Institutions. All educational institutions, except those under the State 
Board of Agriculture, place orders for their requirements with the Board of Public 
Affairs. They, like the penal and eleemosynary institutions, however, purchase under 
standing orders, but the only educational institution Which appears to do the bulk 
of its purchasing under standing orders is the Central Teachers’ College. It does 
most of its purchasing under four standing orders: Two for $9,000 each and two fox*' 
$3,000 each. 

The agricultural institutions under the State Board of Agriculture do their own 
purchasing. This Board does not function as a purchasing agency. The only purchas¬ 
ing done directly by it is that of buying office supplies for its own use and these pur¬ 
chases are made by the secretary of the Board by shopping around similar to an in¬ 
dividual. There is no formal procedure for the immediate office of the Board. 

The purchasing procedure employed by the educational institutions varies. The 
most modern procedure is that employed by the University and by the A- and M. Col¬ 
lege. The University purchases most of its needs through the Board of Public Af¬ 
fairs while the purchases of the A. and M. College are made by its own purchasing agent. 
All purchases of the latter are made under formal or informal bids except certain 






















342 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


purchases of feed tags, made in the past at the direction of the president of the 
Board. 

The purchasing procedure of this Board is usually that of approving requisitions 
presented to it for action at each regular meeting. Since the Board is not in con¬ 
stant session the bulk of its fiscal work at each monthly and special meeting is that 
of approving contracts, of authorizing purchases, of validating purchases already made, 
of approving payments already paid out of the so-called revolving funds and in¬ 
stitutional depository accounts, and of reviewing and approving claims submitted to it 
by the agricultural institutions for payment out of legislative appropriations. All of 
its actions are recorded in detailed minutes, even to the extent of enumerating each 
individual appearing on the pay rolls submitted to it for approval. 

Highway Commission Purchases and Contracts. The provisions under which con¬ 
tracts may be awarded for construction of highways are outlined in, Sections 10091 and 
10095 of the Statutes, 1931, as amended by Chapter 22 of the Session Laws of 1933. 
The lajw provides in effect that before proceeding with any road improvement the 
Commission shall cause suitable surveys to be made and plans and specifications pre¬ 
pared and that all work shall be performed in accordance with such plans and speci¬ 
fications except for approved modifications to* take care of unforeseen conditions. Bids 
on construction work are required to be advertised for two consecutive weeks in a 
newspaper published in the county where the work is to be done. If the project 
advertised is for construction of more than eight miles of road the advertisement must 
provide for bids on sections not to exceed eight miles, as well as on the project as 
a whole. 

In accepting bids due consideration is required to be given not only to the prices 
bid and the responsibility of the bidder, but the law provides that all things being 
equal, “preference shall be given materials produced within the state and highway 
construction companies domiciled, having and maintaining offices in, *and being tax¬ 
payers of the State of Oklahoma.” All construction contracts are approved by the 
Highway Commissioners, Successful bidders are required to give bond for the faith¬ 
ful performance of the work specified. 

With regard to the purchase of maintenance materials, supplies and equipment, 
Section 10091 authorizes the Highway Commission to purchase, after receiving com¬ 
petitive bids, road materials and road machinery to be used in the improvement and 
maintenance of roadways; and to purchase, rent, or lease any machinery or other articles 
for the operation of the field engineering work, the testing of materials, and the prep¬ 
aration of plans. 

The purchasing procedure of the Highway Commission is well organized and ef¬ 
fectively conducted. The organization consists of a purchasing agent, a central ware¬ 
house, a testing laboratory, shops for storage and repairing in each of the six en¬ 
gineering divisions, and shops and small storerooms In each of the maintenance di¬ 
visions for storing gasoline, oil and repair parts. Many of the purchase con¬ 
tracts are made on an annual basis. These relate primarily to gasoline and oil which 
/ are purchased in tank delivery lots. About 80 per cent of the purchases are made 
by the central office under competitive bids. 

Revolving Fund Purchases. These are not made through the Board of Public Af¬ 
fairs. the central purchasing office. These purchases are made by the departments 
and institutions, under contract in some instances; but most of such purchases are 
made in the open market without receiving competitive bids. No means are afforded 
for a real audit of such purchases since copies of all such purchase orders are not 
submitted to the State Auditor’s office 'with the claims submitted for payment. 

Conclusions and Recommendations. In surveying the purchasing procedure of the 
state government it was observed that the purchasing work is largely decentralized 
even for those institutions directly under the State! Board of Public Affairs. This is 
due to its present practice of validating unauthorized purchases and of issuing 
standing orders. It is estimated that approximately 70 per cent of the purchases made 
Dy the Board of Public Affairs institutions, other than those items purchased under quar¬ 
terly contracts, are purchased locally in the open market under standing authority 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


343 


orders issued by tbe Board. The State Board of Agriculture does not attempt to 
contract and purchase for those institutions and agencies directly under it. The 
elected officials make practically no purchases through the Board of Public Affairs, 
and many of the appointed officials at the seat of government ignore the Board as 
a central purchasing agency, particularly those operating under special (cash) funds. 

The commodities boughlt by the Board of Public Affairs are not necessarily the 
best suited to the needs of the respective departments and institutions since they 
are not purchased under standard specifications; and the Board relies wholly upon 
the departments to test and check the supplies upon delivery. We were informed 
that substitutions are frequently permitted. 

The record work is complete, but it is cumbersome in some respects, particularly 
the present method of keeping minuted and of obtaining approvals. For example, the 
Board (at least two of the three members) signifies its approval of a purchase by 
initialing the requisitions and by indicating whether the supplies should be purchased 
with or without receiving bids. The purchase orders are signed by two of the 

three members of the Board, frequently by all three, and certified claims, upon receipt 

from the receiving departments, are also approved by at least two members, and this 
approval is frequently delayed for days because of the absence in the field of two 
members of the Board. It is because of this procedure that the statement was made 
by a member of the Board’s staff, that “it is not possible to take advantage of cash 

discounts because it is impossible to pay a voucher within two weeks under our present 

procedure.” 

To obtain economy in state purchases, the following recommendations are mdde. 

The purchasing and contracting functions of the State Board of Public Affairs, to¬ 
gether with the personnel authorised for this work, should be transferred to the proposed 
State Purchasing Agent. However, if the Department of Public Welfare is established 
prior to that of the office of State Purchasing Agent, the purchasing and contracting func¬ 
tions for the welfare institutions should be transferred to the Public Welfare Department and 
eventually to the State Purchasing Agent. 

The purchasing and contracting functions of the Highway Commission purchasing agent, 
together with the personnel authorized for the work, should also eventually be transferred to 
the proposed State Purchasing Agent. 

The purchasing and contracting functions of the Agricultural and Mechanical College 
purchasing office and all other purchasing and contracting functions of the State Board of 
Agrictdture, together with positions authorised for such work should be transferred to the 
proposed State Purchasing Agent’s office. 

The purchasing and contracting functions now performed by all other state agencies 
should also be transferred to the proposed State Purchasing Agent. 

The duties of the State Purchasing Agent should include all acts in connection with the 
promulgation of standards or specifications, the advertisement for bids, the award of con¬ 
tracts, the inspection of deliveries, and the operation of a central storeroom. 

The duties of the purchasing office should also include the purchase of standard books, 
records and forms made use of by county governments, and the proposed state purchasing 
agent should be authorised to make contracts and to purchase other commodities for counties 
upon the request of the county governing board. 

A central storeroom should be established for stationery, office supplies, paper, and stand¬ 
ard forms used by all departments and establishments of the state government. 

A working capital fund of say $25,000, should be established to finance such purchases, and 
this fund should be reimbursed by imrrants drawn upon appropriations or special funds of 
the departments or institutions in favor of the revolving fund purchase fund. 

Finally, the proposed State Purchasing Agent should be given power and authority to 
supervise the disposal of institutional products, establish prices, and to transfer surplus sup¬ 
plies from one state agency to another. 

CUSTODY OF STATE OWNED PROPERTY 

Next in Importance to the purchasing and contracting methods is the conservation 
of the property acquired. At the present time the custody of state-owned property is 
vested in: (1) The Adjutant General as custodian of (a) the Capitol building and 


344 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


grounds, and (b) the National Guard armories; (2) the State Board of Public Affairs rela¬ 
tive to (a) the operation, repair and improvement of the Capitol building, grounds 
and appurtenances thereof, and (b) the property of eleemosynary institutions not 
directly under the control of the respective boards of trustees; (3) thle State Board 
of Agriculture, for the property of educational institutions now under its control; 
(4) the Board of Regents of the University of Oklahoma for all property under its 
jurisdiction; (5) the Highway Commission for all property acquired and used in 
the construction and maintenance of highways; and (6) the departments and inde¬ 
pendent establishments of the state government for all property under th^ir control. 

Section 3571 of the Statutes, 1931, sets forth that the State Board of Public Af¬ 
fairs, in addition to the general maintenance of the Capitol building and grounds, is 
charged with the duty of making contracts by or on behalf of the state for any 
buildings or rooms rented for the use of thje state or any of its officers, and it also 
has charge of the arrangement and allotment of space in all buildings, including the 
State Capitol. This same statute also charges the Board with the “custody and con¬ 
trol of all state property, and all other property managed or used! by the state, except 
military stores and such as come under the control of thje state banking depart¬ 
ments;” and (2) the Board is responsible for procuring fire insurance on all gov¬ 
ernment property. 

Other custodial duties are assigned to this Board in Article 7 of Chapter 20 of 
the Statutes, 1931. For example, it is the duty of the Board to mark all government- 
dwned automobiles; it has authority to advertise, sell and exchange personal prop¬ 
erty of the state; transfer personalty from one department to another and it is au¬ 
thorized to exchange and transfer properties produced by state institutions. 


Organization and Personnel. 

guarding and maintenance of the 

The organization, personnel, and salaries 
Capitol building and grounds follow; 

paid in 

A. Custodian (Adjutant General) 
Policemen, 5 at $1,320 

Extras, 2 at $1,200 _ _ 


$ 6,600 
2,400 

$ 9,000 

B. Board of Public Affairs 

Operation and maintenance 

Superintendent __ 

Elevator operation, 5 at $1,200 
Janitors, 24 at $1,200 

Laborers, 7 at $90 per mo. 

$ 1,800 
6,000 
28,800 

. - - — _ 7,560 

44,160 


Power House 


10,350 

54,510 

Engineer _ _ _ 

Firemen, 3 at $1,500 _ 

Plumber 

. — _ - _ _ - 2,250 

_ - - 4,500 

_ _ 1,800 

Electrician - 

1,800 




Total Annual Salaries - 1 - 63,510 


The organization includes 41 regular employees in addition to extra help, which 
at time of our survey numbered nine temporary employees. 

Recommendations have already been made for the complete centralization of all 
purchasing and contracting responsibility in the proposed State Purchasing Depart¬ 
ment. If the purchasing agent is to be held responsible for the economical aquisition 
of property, he should also be in charge of all portable equipment. He should be 
required to keep records showing the location and nature of all office furniture and 
equipment as well as motor equipment in charge of departments. Under the present 
procedure of purchasing and custody, if a department desires, it may purchase a 
desk, a typewriter, or an automobile irrespective of the fact that another department 
may have exactly the same piece of equipment not in use. In other words, the State 
Purchasing Agent should act as a coordinator between departments for the transfer 
of unused property as well as an agent through whom property may be acquired. 

The custody of office furniture and equipment should, therefore, be transferred 
from tile State Board of Public Affairs to the Purchasing Department, together with 
the duty of keeping records of such equipment and reporting its value, condition, 
location, and whether it is in use or subject to transfer to some other agency. More¬ 
over, the Purchasing- Agent should be required to keep 1 the same type of records and 
rendei the same kind of reports for all motor vehicles owned by the government 





















ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


345 


Conclusions and Recommendations. Authority for the .custody of all state-cKvned 
property is now divided asi enumerated above. No recommendations are deemed nec¬ 
essary with, regard to property located outside of Oklahoma, City. With regard to 
the care and custody of property at the seat of government, the following recommenda¬ 
tions are submitted: 

The custody of office furniture and equipment should be transferred from the State 
Board of Public Affairs to the proposed State Purchasing Agent’s Office, when established. 
His records should show the value, condition, and location of alt automobiles, furniture and 
equipment, and whether such automobiles, furniture and equipment are in use or subject to 
transfer. 

When requisitions are submitted by departments for the purchase cf automobiles, furni¬ 
ture and equipment, the State Purchasing Agent should have authority to transfer any such 
property of the state not in use to the department or institution making such requisi¬ 
tion by transfer of appropriation or fund credits in the amount involved. 

The State Purchasing Agent should be designated Custodian of the Capitol building and 
grounds, and the personnel and appropriations now made to the State Board of Affairs for 
the repair, maintenance and operation of the Capitol) building and grounds should be trans¬ 
ferred to the State Purchasing Agent’s Office when established, or to the Department of 
Public Welfare if this department is established before the Office of State Purchasing Agent. 

The custodial functions of the Adjutant General should be transferred to the State Pur¬ 
chasing Qffice when established, and the Capitol police should be transferred to the Depart¬ 
ment of Public Safety (or Justice ). 

If the Department of Public Welfare is established prior to the establishment 
of the Office of State Purchasing Agent, it will doubtless be necessary to retain the 
State Board of Public Affairs temporarily in order that an agency may be available 
to handle purchasing, contracting, and custody for institutions and agencies outside 
the public welfare field. Under no circumstances shjould the Department of Public 
Welfare be assigned any of the functions treated in this chapter unless they relate 
to matters appropriately within the jurisdiction of the Public Welfare Department. 
Obviously, Oklahoma’s legislative program should contemplate the establishment of 
a State Purchasing Agent and a Department of Public Welfare on the same date. 





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PART IV 
General Organization and 


Basic Controls 




/ 


CHAPTER XX 

PERSONNEL ADMINISTRATION 

In the past quarter of a century the United States has passed from the age of the 
horse to the age of the automobile and the airplane. The new age has brought new 
problems to governments, the existence of which was scarcely known to the framers 
of many of our state constitutions, even in so new a state as Oklahoma. The ‘change 
lias made the daily work of government a concern of every resident of the state, be¬ 
cause, whether he realizes it or not, the work of government affects his life in count¬ 
less ways. The daily work of government is nowadays called, for short, “public ad¬ 
ministration.” The people of the country are beginning to appreciate that public ad¬ 
ministration demands attention because it has been neglected, and because it plays so 
important a part in determining the tax burden, and an even greater part in deter¬ 
mining what the people get in services for the taxes they pay. To make these facts 
clear, it may be well to review briefly a few things pretty familiar to all who are past 
middle age. 

Twenty-five years ago the state government had nothing to do with roads. Roads 
were of concern only to the local residents of a township or a county and it was suffi¬ 
cient if they were kept reasonably passable. Today the Highway Commission is the largest, 
or the next to the largest, department in practically every state. Millions of dollars of 
tax money are spent in constructing and maintaining roads. Their location and condi¬ 
tion affect not only the comfort, safety, and personal finances of every owner of a pri¬ 
vate automobile, but also the costs of transporting passengers, wares, goods, and mer¬ 
chandise. Formerly, any honest, practical, hardheaded! county commissioner was equal 
to the task of keeping local roads in shape for the passage of the horse and wagon. 
Even if a considerable percentage of the money spent was! wasted, it did not amount 
to much in real dollars. Today the building of a modern hard-surfaced road, or the 
construction of a two way modern bridge across a river or over a railway track de¬ 
mands the services of expert engineers, draftsmen, contractors, and inspectors. The 
sums spent are so great that even if a small percentage is wasted, that waste amounts 
to thousands of dollars. In the matter of highway construction and maintenance the 
major questions are administrative, having to do with the day in and day out work 
of the employees of the highway department. > 

The method that Oklahoma has adopted for the issuance of automobile license tags, 
a matter discussed in other chapters, is an indication of how the routine clerical work 
of the state is done. The fact is that, the past half century has revolutionized such work. 
Today, with adequate equipment, a single experienced clerk can do accurately and 
rapidly work which ten clerks could scarcely have done in the old days. Clerical work 
has undergone an industrial revolution of its own, w’hich should either save the tax¬ 
payers money of leave larger sums available for constructive work. 

The past 30 or <10 years have witnessed another rapid development of an important 
function of government, the promotion and protection of public health. In the horse- 
and-buggy days, progressive communities appointed one of the local family physicians 
a part-time public health officer. Today, a community or a state that, follows that course 
is regarded as backward, because experience has demonstrated that curative medicine 
and preventive medicine are not one and the same thing, that public health work de¬ 
mands special training in fields of which the family physician can be only slightly 
informed. Great universities now have special departments for the training of public 
health officers, sanitary engineers, and other specialists needed for the safeguarding 
of public health. Many a family physician, in matters of life and death, now depends 
on the laboratories of the public health service for diagnosis; and from that service! he 
secures tested serums and vaccines. The ordinary city dweller 1 is dependent on the day- 
to-day work of public health officers for protection against typhoid. If any citizen gets 
typhoid or diphtheria, his recovery may depend on the efficiency of the laboratories of 
the state health department. 

In the a*e of the horse, state governments and local governments depended very 
largely for their revenues on the ad valorem property tax which was easy to admin¬ 
ister, but bore heavily on land. When states were predominately farming communities 
with few cities and little industry other than agriculture, the ad valorem tax was 


350 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


passably satisfactory. With the development of cities, industries, and public service 
corporations, the ad valorem tax system broke down. Modern states have had recourse 
to income taxes, inheritance taxes, corporation taxes, and other complicated taxes, the 
successful administration of which requires expert investigators and accountants. The 
collection of such taxes becomes a battle of wits between the lawyers and experts rep¬ 
resenting the large taxpayers, and the accountants and investigators representing the 
state. Unless the state gets and keeps able, loyal, and honest men, it cannot collect the 
taxes due it, and the honest taxpayer has to foot bills that should be borne by indi¬ 
viduals and corporations that are successful in dodging taxes. 

Similarly, the modern state has adopted as a policy the regulation and control of 
many private industries in the interest of the ordinary citizen, who! is in such instances 
practically powerless to protect himself. If this service of the state is to achieve fits 
purpose, the state must retain employees who are not only able to investigate compli¬ 
cated accounts and records and make the necessary physical examinations of proper¬ 
ties, but also so devoted to the public service that they cannot be influenced by rep¬ 
resentatives of the business being regulated. Unless the state has employees of ability 
and character, devoting their lives to the protection of the public, the industries that 
are to be regulated gain control of the regulating machinery. The failure of state 
regulation of private industry has in many instances been due to failure to get and 
retain the proper type of public employees. 

OKLAHOMA’S PRESENT NEEDS 

In the opening chapter of this report, the misapplication of legislative energies, in¬ 
terference by the legislature in administration, and popular apathy with respect to 
administrative conditions were pointed to as fundamental problems which Oklahoma 
must solve if it is to expect better government. Members of the legislature must con¬ 
fine themselves to their proper functions—policy-making and general control through 
the enactment of laws. The spoils system must be eradicated, so far as it is humanly 
possible to do so. 

Trained, Experienced, Efficient Employees. If the people of Oklahoma want an 
efficient service government they must have, from top to bottom of the administrative 
branch, trained and experienced employees, the kind they themselves would employ if 
they were paying the salaries and wages out of their own pockets. They are, as a mat¬ 
ter of fact, paying the government employees out of their own pockets now; but in 
Oklahoma they have given little attention to what they get for their money. 

What constitutes a trained and efficient employee? 

Good native or natural ability comes first. The employees must have native or 
natural ability enough for the kind of work he has to/ do. The state is unquestionably 
under obligation to provide for those of its citizens who lack sufficient natural ability 
to maintain themselves by their own efforts; but this provision should be made sys¬ 
tematically, uniformly, and fairly. Nobody should have the special privilege of putting 
the family dumb-bell on the public’s payroll. 

Good character, which includes honesty and fidelity, should be placed second. The 
people of Oklahoma pay for the bonds of their public officials. They may well inquire 
why the premium rates for their employees are so extremely high, from two to five 
times what the bonds of federal employees cost. They may well inquire how many of 
their ex-county servants are now being supported by them in the state penitentiary 
instead of on the public payroll. 

To a rapidly growing extent, public administration is demanding persons educated 
for professional, scientific or technical work, physicians, nurses, lawyers, teachers, en¬ 
gineers, chemists, agricultural specialists, economists, statisticians, and accountants, 
to name the numerically more important. For many years now, training for practically 
all these professions is given in educational institutions, in Oklahoma in public institu¬ 
tions maintained by the state. Progressive states and private employers now generally 
require that persons appointed to professional, technical, and scientific positions, shall 
be graduates of appropriate professional or technical schools, and shall have oualified 
for practice under such laws and regulations as the state may have provided. 

For those employees who come in contact with the public, good personality is at 
least highly desirable. The public is entitled, not only to expert and prompt service, but 
also to courteous and considerate service. The difference between really fine public ser- 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


351 

vice and autocratic, bureaucratic service turns in no small measure on the character 
and the personality of the employees. Let it be noted in passing that this observation 
applies not only to the offices at the State Capitol and to the higher educational institu¬ 
tions of the state; it applies equally to the hospitals for the insane and the penal in¬ 
stitutions. A right thing done in a surly, autocratic high-handed manner may cause 
more unrest and more resentment than a wrong thing done considerately. A firm, strong 
man is not necessarily discourteous and inconsiderate, any more than a surly, gruff or 
brutal man is necessarily firm and strong. A wise and experienced public administrator 
once recommended a course in manners for employees who must deal with persons in 
great distress. 

In procuring clerical workers, both public and private employment departments are 
tending to place more weight on mental equipment, which is in part measured by the 
educational record, grade of school finished, and marks attained. Why they are doing 
so can perhaps be most easily indicated by considering stenographers. When a new 1 
stenographer is employed, the person for whom she works expects to have to dictate 
every thing to her, to give her detailed instructions about all the work, and to review her 
entire product for the first few weeks. But he does not want to keep that up for the en¬ 
tire period of her employment. He wants her to learn rapidly, to become competent to do 
the regular work without close supervision and direction, and often to be resourceful 
and self reliant, able to take the initiative within her assigned field. Such a stenog¬ 
rapher relieves him of a mass of time-consuming detail and leaves him free to devotel 
himself to his more exacting work. He wants a stenographer “with capacity for growth,” 
which is to a certain extent indicated by her educational record. In several other 
branches of clerical work this “capacity for growth” is a vital factor in good adminis¬ 
tration, for from among those who enter as clerks and stenographers, will be developed) 
the section heads and division chiefs in clerical administrative work. This is particu¬ 
larly true of such units as the bookkeeping, accounting, and auditing departments, and 
the supply, equipment, and purchasing departments. 

Training and experience on the job is the final requirement for the making of an 
efficient employee. Persons can be secured with the requisite “skills” for their tasks, 
to use the technical term, the meaning of which is fairly obvious; but they must learn 
the work to which their “skills" must be applied. Procedures may be fairly intricate, 
governing law may be complex and involved, individual cases to be investigated may 
require months of independent study. In relatively simple kinds of government work, 
it may take six months to train a promising employee possessed of native ability and 
the requisite skills. In intricate and responsible technical work it may take years. 

Permanence of Tenure. If the people of Oklahoma are to have an efficient service 
government they must keep their skilled and experienced employees on the job for 
years. Four years is little more than a, training period. A recent experience will illus¬ 
trate what the state is suffering from at present. A member of the survey staff was 
looking into the work of a state employee filling a vitally important position. In many 
a private corporation, the work of such a man means the difference between profit and 
loss for the company. To the state, the work on that desk means; either economy or 
waste either honesty or graft. When the employee being interviewed entered the ser¬ 
vice five years ago, there was little system, unquestionably much waste, and probably 
some graft. He had built and was perfecting a system that was reasonably good, but 
could, as he knew, still be greatly improved. As the staff member went into each step 
of the work with this state employee, a long queue of job hunters formed in the room 
waiting to get into the front office for inteiwiews. The official nudged his interviewer 
and whispered: “See that man in the red necktie just coming in the door? He is after 
my job.” In a few minutes more: “See the man in the gray suit coming in now? He’s 
after it, too.” And again in a few minutes : “See the big fellow?) He’s another one who 
wants me fired so he can have the job.” 

The next morning, the staff member who had observed the incident began to read 
the morning paper. Suddenly, he commented: “The man with the red necktie has the 
job.” 

He hurried to the Capitol to complete his study before the experienced employee 
left; but he was not prepared for the speed with which such changes are made in 
Oklahoma. The man with the red necktie was at the desk and the assistant chief was 


352 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


busily engaged in attempting to instruct his new chief. At noon, the former chief came 
to the front office in response to a telephone call. He was asked to stay a month to 
teach his successor the job. He refused on the ground that no one could learn that 
job in a month,, that it would be a waste of his time and his successor’s time. It would 
take at least three months. Finally, it was arranged that he should remain for three 
months in his old job. That raised a problem; what, in the meantime, should be done 
with the new man? That was easy. Without any notice, they fired the assistant chief 
—the willing, eager teacher of the morning—and put the new man in his place tem¬ 
porarily. Another detail should be added. The assistant chief had among his duties 
the shorthand reporting of fairly involved cases in which many witnesses were called. 
He had on hand several note books full of shorthand notes of hearings that had not 
been transcribed. Naturally, being fired, he did not stay to transcribe them. 

For one more example, an important state activity was being operated without real 
statistical control, and thus the real facts about it could not be learned. Many states 
and private corporations having similar work regard statistical control as absolutely 
essential. Inquiry indicated that once the state had such a system, but it had been 
thrown out because the rental of the statistical machines cost almost as much as the 
salary of a clerk. Incidentally, machines of that type permit one clerk to do work 
that ten clerks could scarcely do by hand. Nobody found at the Capitol knew the de¬ 
tails, “that was before my time, six or seven years ago.” The former employee who 
ran the system was located at her present place of business. When in the state ser¬ 
vice, she had written to other states and secured copies of their reports and descrip¬ 
tions of their methods. She had received help from the representative of the statistical 
machine company and from representatives of various companies that did similar work 
or needed the statistical facts. She had a job that is difficult even for a trained and 
experienced expert. Under the circumstances, she had done a good job for the state, 
for which she was rewarded by being dismissed without notice when her political spon¬ 
sor passed from the picture and his successor wanted the patronage. To a new and 
inexperienced employee, statistical methods of that kind are “all Greek.’’ The cards 
and codes are practically meaningless unless they are fully explained; and the old em¬ 
ployee was not asked to stay and explain them. All her work was junked; although 
that kind of work is the only way to get controlling facts regarding transactions in¬ 
volving thousands of dollars and the safety and well being of thousands of citizens. 

Cases of that kind do not arise in state governments operated for service. In such 
states new employees ordinarily come in at or near the bottom of their particular line 
of work. They are carefully supervised and trained until they perform their duties 
more or less independently. When a vacancy occurs immediately above these new em¬ 
ployees, the most promising one is promoted to fill it. The trained experienced, per¬ 
manent man at the top of the administrative agency, immediately below the policy¬ 
making officer, is ordinarily a person with years of successful experience and possessed 
of sound judgment within the range of his duties. He is an administrative expert. 

Abstention from Politics. In the administrative branches of the service state, the 
permanent employees are not, as a rule, permitted to engage in party politics, although 
they are permitted) to vote both in primaries and elections. In a political administrative 
organization, such as Oklahoma has, the employees are expected to get out and hustle, 
not only for their party but for the faction of the party to which their political patron 
belongs. If they can spend the taxpayers’ money in a way that will help their patron, 
that is part of the system. Necessarily, in Oklahoma, with its numerous elected ad¬ 
ministrative officers, the employees in each department have to back the boss politically, 
or if he is retiring, his choice as his successor. Continuity of administrative service 
is found only where the chief has served several terms, or where he has been success¬ 
ful in picking his successor, in other words, where the political machine is successful. 
Asked about political assessments, which are prohibited in the service state, one em¬ 
ployee in a subordinate position explained: “We are not assessed; we gladly contribute 
to the success of our party.” 

If the rank and file of the administrative employees of the state want reasonable 
permanence of tenure and desire to make the public administration a career, they must 
forego the privilege of getting their jobs primarily by political pull. If they get their 
jobs as the sun of their patron rises, they lose them as it sets. How well they have 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


353 


clone lheir work plays little part. New patrons rise to demand places for their political 
henchmen. Such a system in a technical engineering service such as the Highway' De¬ 
partment costs the automobile users hundreds of thousands of dollars in a few years. 
If Oklahoma is to have an efficient, expert administrative service with permanency ofi 
tenure, the Governor, the elected department heads, and the members of the legislature 
will have to surrender the'ir patronage, so far as the! non-policy making positions of the 
state are concerned; or the people of the state will have to take it from them through 
initiated legislation. 

Modern Methods of Getting Efficient Employees 

To secure efficient, economical administrative service, most states have to change 
radically their methods of selecting personnel. A few of the older states are fortunate 
in that they never departed far from the methods used by George Washington and the 
other early presidents of the nation. Employees were chosen for the few positions then 
required with careful consideration of their ability and personal character; and, once 
appointed, they were generally continued from one administration to another. It was 
not until the days of Andrew Jackson that the practice developed of turning out most 
of the old employees to make room for the party followers. Beginning in New York 
state, the spoils system was soon adopted by the nation and spread to other states, 
bringing with it, in many instances, conditions! such as prevail today in the government 
of Oklahoma. Such conditions made it necessary for Grover Cleveland to say, what 
would seem to be obvious, “A public office is a public trust.” 

The United States government and the governments of nine states, New York, 
Massachusetts, Illinois, Wisconsin, Colorado. New Jersey, Ohio, California, and Mary¬ 
land, now have in operation a different system. Later on, the question of what the 
people- of' the state must do to make such a system effective will be discussed with some 
frankness, for its success depends on the temper and determination of the people. No 
system designed to prevent racketeering in public office will work itself. But at this 
point, the new procedure will be described. 

Open Competition. Full free competition, open to all citizen^ of the state possess¬ 
ing the requisite minimum qualifications, is the first essential. The competitions should 
be widely advertised, sufficiently far in advance so that every oualified person who so 
desires will have ample time to enter. In some instanced there are certain well-known 
sources of supply of good candidates. Special efforts are made, not only to see that 
the competition is thoroughly advertised at these sources, but also that the competition 
is held at a time when promising candidates are most likely to enter. Many private 
enterprises have learned that the time to pick fine young people for new blood, in their 
organizations is in the spring when the senior class is about to graduate; and they 
send their personnel men to the schools to pick the most promising youngsters. Aus¬ 
tralia, which has developed the new system probably as well as any democratic country 
in the world, holds its competition in the spring and has adapted it. to fit the public 
school system. In fact, in Australia a chance for a career in the public service is one 
of the incentives that the youngsters have for applying themselves seriously to their 
work in the schools. There the public educational system trains for the public service 
to the profit of the schools, the youth of the country, and the state. 

Impartial Judges. A fair race requires impartial, honest .nidges. If the people of 
Oklahoma adopt the modern system, they should watch the judges; because if the 
judges are partisan or crooked, the people will not get full benefit from thei system. 

Job Analysis. Job analysis is the third requisite. A thorough study is made' of 
the duties and responsibilities of each position in the state service. The positions are 
then classified so that all positions that are substantially alike with respect to duties 
and responsibilities are put in the same class. Each class is given a distinctive title 
which nmst always be used on payrolls and in accounts and reports. Exactly what 
the title means is set forth in written class specifications which describe in detail the; 
duties and responsibilities of the positions in that class. To add to the clarity of the 
specifications, numerous illustrations of specific tasks are included. The judges use 
these specifications when hearing a case in which the charge is that a position has 
been put in the wrong class. They compare the actual duties! of the particular position! 
with the specifications and then decide in what class the position actually belongs. 
The system means that the state buys services on specifications; and the employee sells 


354 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


services on specifications and gets paid on specifications. It is not as simple as cotton 
grading or grain grading or buying supplies and equipment! on specifications or building 
houses, public buildings, or highways on specifications; but the principle is the same. 

Qualifications. After the jobs have been analyzed and arranged in named classes 
according to duties and responsibilities, and after the specifications have been written 
describing the duties and responsibilities, comes the task of determining what qualifica¬ 
tions an employee must possess to enter each specific class. Let it be! clearly understood 
that no state can start with a perfect set of entrance qualifications. The most it can 
hope for is to start with a reasonably good set and gradually to improve them through 
experience and scientific study and investigation. Progressive governments and private 
employers are doing research in that field. The United States Civil Service Commission 
maintains a research division to make such studies; and the Assembly of Civil Service 
Commissions of the United States and Canada maintains in Chicago a central bureau 
for that kind of work. They all cooperate; and many universities cooperate with them. 
The advances which have been made in this field since the beginning of the World 
War are little short of amazing. The people of Oklahoma can, of course, have the 
benefit of participating in this cooperation if they decide that they want an expert 
personnel in the administrative branch of their government. 

Tests. The next step is to develop the tests that will be given the contestants 
who enter the race, to determine not only that they possess the required qualifications, 
but also to say in what order they cross the finish line. The system requires either 
that the winner gets the job (the Canadian plan) or that the appointing officer picks 
from the three highest (the United States plan). Politicians who do not want this 
system because it deprives them of their patronage have an ancient trick; they attempt 
to discredit it by describing the tests that were used about 50 years ago when the 
system was first introduced in the United States; and even then they pick the worst 
examples they can find rather than the average or the typical. They' do not describe 

the tests that are used today by the progressive states, the national government, and 

many private employers. They do not quote from the extensive literature on personnel 
administration. 

In the first place, it should be said that frequently the competition is something 
like a track meet. The competitors compete in different events and the winner is the 
one with the highest score in the meet as a whole. In the language of the modern 
personnel officer, he uses not a single test, but a battery of tests; which means that 
he requires' not a single event but as many events as are necessary’ to prove the can¬ 
didate’s ability in different parts of the work. In what follows, types of events will 

be described, but it should be remembered that frequently, even generally, these 
different types are combined in a battery. 

In many lines of work good health, physical strength, and a good physique are 
essential. In the case of unskilled laborers, physical condition, reliability, and willing¬ 
ness to work may be the only requisites; while, for other classes it may be a pre- 
reouislte before candidates are admitted to other tests. Administratively, of course, 
it is an 1 easy test to give. The candidates, one by one, are examined by the physicians 
appointed by the judges. If physical fitness is only a prerequisite for other tests, the 
applicant is ordinarily either passed or rejected. If physical strength and ability are 
the main requirement the candidates are graded, which, of course, is more difficult. 

Governments require many skilled tradesmen, particularly in their institutions and 
public buildings and in operating and maintaining automobles, trucks, and busses. 
Three main devices may be used in these tests: (1) Getting ai complete record of the 
candidate’s industrial and educational history, with details as to the jobs he has held, 
and his employers, which details are checked by communication with former employers 
and getting their recommendations; (2) giving the candidates written tests, rather 
skilfully devised so that he works from pictures of tools and actual jobs or setups or 
parts of jobs and makes his answers mainly by marks and does not have to write 
descriptions or long sentences (he is being examined on his trade knowledge and not 
on his English) ; and (3) having him do, for the judges, some, of the things he will 
have to do on the job. These three methods are sometimes combined in a battery 
in the order just given; and only those qualifying in tests one! and two are given the 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


355 


actual work test, which may take the form of probational employment on the job, 
in the very setting where the regular work will be. 

For stenographers, typists, and several other classes of office workers, it is. entirely 
practicable to include in the battery, actual duties tests in which the contestants do 
for the judges almost exactly what they would dt> on the job. In developing tests for 
stenographers and typists, the United States Civil Service Commission, the personnel 
officers of large corporations, and representatives of both public and private schools 
have cooperated, and the tests are excellent. Satisfactory tests are also available for 
bookkeepers, statistical clerks, filing clerks, and office appliance operators. 

Sometimes the government has to get people to train to do a kind of work that 
dees not exist in private enterprise, or to fill jobs where the demand far exceeds the 
supply of experienced, skilled workers. Mail sorters and railway mail clerks in the 
postal service are examples. In those cases the jobs are analyzed to determine the 
skills required and then tests are perfected to see to what extent the candidates have 
the necessary skills. The professionals call these devices “aptitude tests,” because 
if the candidates can do the tests they are naturally adapted for the regular work. 
Such tests have produced first-class results in many instances; but developing one of 
them calls for experts in testing. 

Examining for entrance to the junior scientific, professional, or technical positions 
is easy, because the candidates are accustomed to written tests. They have taken 
them in the universities and professional or technical schools and often in qualifying 
for practice before state boards. The judges frequently bring in a committee of dis¬ 
tinguished experts to prepare the questions and at times to assist in grading the 
papers. Experience of the national and the state governments shows that these tests 
produce excellent results. 

In an old established office working under the merit system, professional, scientific, 
and technical positions above the junior or ordinary entrance grade are generally filled 
by promotion; but occasionally it is necessary to bring in a man from outside the 
service. Then a non-assembled examination is 1 given. That means that the candidates 
are not brought together and are not given written tests. Instead, they submit a 
detailed record of their training and experience and samples of their scientific or pro¬ 
fessional work. Their statements are checked for accuracy; and confidential informa¬ 
tion regarding their records and qualifications is obtained from reliable sources. They 
are then rated on the basis of their training and experience. 

Occasionally, a position of great importance and public interest is filled by com¬ 
petition. The United States, Canada, and several of the states often meet such a 
situation by creating a special examining board, usually of three, made up of persons 
eminent in their professions and with exceptional public standing. The United States 
Commission ordinarily includes its chief examiner as one of the members. Frequently 
these special examiners serve without pay; although their actual expenses are met 
by the government. New York and New Jersey commissions sometimes send outside 
the state for special examiners of this type, to avoid any suspicion of local interests 
and connection. Often in this type of competition, the professional leaders and asso¬ 
ciations are notified of the competition and are asked to suggest candidates. The com- 
missicn then writes to the candidates so suggested and asks them to submit applica¬ 
tions. It is, of course, a high honor for a professional or technical man to be selected 
for a responsible public position by such a judicial tribunal of experts in his olwn field. 

At about this point, the politician interested in his patronage customarily points 
out “you can't judge character by written tests.” “Correct,” would be the reply of 
practically every experienced personnel man; and, as a matter of fact, he does not 
try to test for character. If the position is one in which honesty, reliability, and 
general uprightness of character are essential, as in positions of great fiduciary respon¬ 
sibility, in tax collection or regulation of industries where corruption may be at¬ 
tempted, or in law enforcement work, character is investigated. Much may be learned 
from the candidate and his record. Much may be learned by confidential interviews 
with persons in the communities where he has lived and worked, friends, enemies, 
former or present employers, fellow employees, and sometimes police officers, and 
judges. Occasionally court records come into the picture. In the United States Civil 
Service, finger prints are used as a matter of routine for certain classes of positions. 
Where character is essential and has to be investigated, a good personnel man wants 


356 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


considerably more than a political endorsement. Politicians have been known to try 
to put black sheep on the public payroll; and frequently they are not accurately in¬ 
formed regarding the persons they endorse. Some political leaders are valuable sources 
of information regarding the character of people in their communities. Thorough 
character investigation is, of course, fairly expensive; but it is worth its cost when 
sterling character is essential. If it keeps only a few crooks off the public payroll, 
it saves the government many times its total cost. 

Personality is the other trait that cannot be tested by written examinations; but 
a good deal about personality can be learned by confidential correspondence with former 
teachers, employers, and associates. If that information is not sufficient, the oral 
examination or interview is always possible. Sometimes the candidate appears before 
a board for his oral examination. Sometimes he is interviewed privately by two or 
more persons separately, each of whom makes his individual report. Where ability 
to make a public address is required, the examiners may have the candidate actually 
address a typical audience of the kind he will have to face and make the kind of 
speech he will have to make. The personnel department can get accurately and syste¬ 
matically the necessary information regarding personality. 

After the candidate has passed the battery of tests and comes out ahead, he is 
given at first only a probationary appointment usually for six months or a year. As 
a matter of fact, in practice the probationary period is largely a precautionary measure. 
The vast majority of people who can come out ahead in a really stiff competitive test 
make good in their work. If they do not, they can, during the probationary period, 
be dismissed without any formality. 

Training of Employees. Progressive governments and private employers give no 
little attention to the training of their employees after they are in service. The new 
junior employee ordinarily works for the first few months under close supervision, and 
his immediate superior devotes a good deal of his time to training and instruction. 
If many employees have to be trained at one time they may be put into a special class, 
either, full time or part-time, with regular teachers. Many municipalities, for example, 
operate regular schools for policemen and firemen, and new income tax men may be 
trained in classes. 

In many public and private businesses the “understudy system” is used. Each 
employee who occupies a responsible position has his understudy whom he is training 
to do his work. If the teacher is sick or 1 goes on vacation, the understudy takes his 
place temporarily. If the teacher is promoted or withdraws from the service, the 
understudy is promoted. Some authorities call this “the three position system.” They 
say that most employees occupy three positions in that (1) they perform the regular 
duties of their own position, (2) they are teaching the persons who will take their 
positions if anything happens, and (3) they are learning the duties of the positions 
ahead of them so that they will be ready in case of emergency. This system is char¬ 
acteristic of service administration; the service, like the play, must go on. 

In the service administration, it should be pointed out, the interests of the state 
and its people and of the employees are in many, perhaps most respects, identical. 
The state and the people want to attract to the administration persons of high character 
and first-class native ability, with the necessary basic education, and to keep them in 
service so that they may grow and develop. The employees want a career in the public 
service; they want to enter it, knowing that they will ,be associated with able and 
honest persons with high professional standards and that they can work up in that 
service in accordance with their ability, effort, and loyalty. The higher the standards 
the state maintains, the higher the quality of the applicants who will seek to serve it. 

The Public Service as a Career. The people of Oklahoma must face the fact that 
at present the positions in the state service are held in low esteem. Let us say that 
a brilliant young boy of 22 has just completed his professional training at the Uni¬ 
versity and was in the upper Quarter of his class. He has two offers of employment; 
one from a good private corporation, the other from', the politically elected head of a 
state department in Oklahoma. The boy says he is not particularly anxious to make 
a lot of money ; he wants only a reasonable living and a chance at a worth while 
career in his chosen profession. Which offer would you advise the boy to take? On 
the other hand, the classified civil service of the LTnited States can be unhesitatingly 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


357 


recommended to any youngster wlio is certain that he will he satisfied with a modest 
living. It is exceedingly doubtful whether, under present conditions, anyone acquainted 
with the Oklahoma government could make a similar recommendation, with respect 
to entering the administrative branch of tlie Oklahoma government. The answer would 
probably be in the form of a question, “Can't you find some other job that will give 
you an opportunity for a career?” 

All those questioned on the subject in Oklahoma, both in state employment and 
out of it, advise against the state service, unless the young man wants a fling at 
politics. As the state administrative departments are now run, they are not attractive 
except as short-time jobs; and short-time jobs in normal times do not attract the 
best candidates. In fact, one new executive in an important agency at the Capitol 
said that he would not object so much to the hoard of job hunters he had to inter¬ 
view ; if among them he could find the kind of employees needed; but, he complained, 
“The kind of people we really need are not applying for state jobs.” The public educa¬ 
tional system of Oklahoma has trained plenty of them; and there is an adequate 
supply. The trouble is that, very properly, the well equipped ambitious youth does not 
want to work under conditions that at present prevail in the administrative service 
of Oklahoma. The wise youth is looking, not for a temporary political job that may 
iast four years, but for an opportunity for a career. If the good private corporation 
offers him that opportunity, while the state sticks to patronage and rotation in office, 
he will naturally prefer private business or else he will leave his own state to work 
for some other government. 

Firing Public Employees. The politician who wants to protect his patronage or 
to get more spoils jobs often says, “The trouble with the merit system is that you 
can’t fire civil service employees.” The test question which is put to administrative 
officers on that subject is something like this: “You have in your organization some 
employees who .are under the merit system and some who are appointed politically. 
In each of the two groups you have one worthless employee. Which one can you fire 
with the least difficulty, the one who got his position under the merit system, or the 
one who was put into your office by Senator X or Representative Y?” The answer to 
that question is easy. Most administrators agree that they can fire a civil service 
employee if they make up their minds to do it, but they have a tough job when they 
try to get rid of the politically powerful. 

Under a patronage system, as a matter of fact, it frequently happens that the 
discipline and responsibility necessary for good work are almost completely absent. 
The employee in a subordinate position, by virtue of his political pull, feels that he 
neither has to work nor carry out the official orders of his superior officer. He knows 
that his official superiors cannot fire him. He feels that he owes them neither loyalty 
nor respect. He holds his position not by the work he does on the public job, but 
by the service he renders his political patron, in the state departments of Oklahoma, 
there is a great deal of that sort of thing, enough so that several responsible admin¬ 
istrative officers admit that they cannot run their organizations' efficiently because of it. 
There is a familiar Biblical quotation, “You cannot serve both God and Mammon.” 
It is peculiarly applicable to a public service run on the patronage; basis. 

If, moreover, the head of. a department holds liis own office by virtue of patronage, 
he cannot very well resist the demands of his patron or his patron’s friends. Should 
they tell him to appoint or to keep a worthless individual, he is under obligation to do it. 
A distinguished educator, as a matter of reasoned principle, does not write endorse¬ 
ments of his students for appointment in the state service because, as he explains, 
“if the politicians feel, that they have done something for me, they will feel that they 
have a right to ask me to do something for them. Our schools should be entirely out 
of politics and so long as the state has the spoils system, we cannot try to place our 
students in the state service without opening the door to patronage in the educational 
institutions of the state.” 

In Oklahoma, as already pointed out, many public employees are dismissed solely 
to make places for patronage appointments. To prevent this type of abuse, several 
states and municipalities have materially restricted the power of executives to remove 
civil service employees, even going so far in some cases as to give the employees power 
to appeal to the courts in event of removal. The framers of the federal civil service 




358 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


law believed in “the guarded front door and the open back door.” They placed 
practically no restriction on the removal power. Under the federal law, permanent 
civil service employees can be removed by the appointing officer at will. All he has 
to do is to file written charges and furnish the employee with, a copy. The employee 
has the privilege of answering the charges; but he cannot have the action reviewed 
by the Civil Service Commission or the courts, with three minor exceptions. The 
United States Commission has authority to review (1) if it is alleged the removal 
was made for political purposes, (2) if it was made because of the employee’s religion, 
or (3) if it was made under the operation of the efficiency rating system, which is 
under the supervision of the Commission. What protects the federal civil servant 
under the merit system is that the politicians cannot appoint the successor and hence 
they gain nothing by creating a vacancy. As a matter of fact, under a well run 
modern personnel system, either in the public service or in private enterprise, little 
firing is necessary, except for reduction of force during periods of severe retrenchment. 
If the work of selecting employees is carefully done, or, in other words, if the front 
door is adequately guarded, very few employees fail to make good. The Oklahoma 
Gas and Electric Company has a modern personnel system. The director of it was 
specifically asked regarding firing, and his answer was typical. “If you select good 
employees, you don't have to fire.” In fact, the modern personnel system in industry 
has been introduced largely to get rid of the costly old system of “hire and fire,” on 
trial, and error, because the cost of training employees is) so great. Many large scale 
modern enterprises have withdrawn from foremen the right to hire and fire, and 
have placed that power in a central personnel department that works in cooperation 
with the heads of operating departments. Today, “wholesale firing” is regarded as 
evidence of bad administration. 

Oklahoma has on its statute books laws under which citizens of the state can file 
charges against certain pub ic servants in the courts; and, if the charges are sustained, 
the courts can order the dismissal of the offending employees. Several students of 
public personnel administration believe that such laws should be generally applicable, 
under reasonable safeguards, to all employees in the administrative service of the state. 
If the courts of Oklahoma were not already congested and if court actions were 
prompt, speedy, and inexpensive, extension of the practice of judicial removal might 
be considered for this state. In any event, appeal to the courts should be a last resort. 
Nevertheless, the permanent merit system employee is a servant of the public; and, 
if he at any time forgets that fact, it is well for the* aggrieved public to' have a definite 
orderly way of reminding him that he is servant and not a ruler or an autocrat. 

Statutory Recognition of the Merit Basis in Oklahoma. Certain statutory and 
administrative developments in Oklahoma indicate that legislators and other leaders 
in the state have not been blind to the damaging effects of the spoils system nor 
unmindful of the need of selecting officials and employees on the basis of merit. For 
example, it /was provided by law in 1933 that all employees of the State Market Com¬ 
mission should be required to pass examinations, prescribed by the State Board of 
Agriculture and prepared jointly by the State Market, Commission and the United States 
Department of Agriculture, all vacancies to be filled by selecting qualified persons in 
the order of their standing in these examinations, 1 When the State Bureau of Crim¬ 
inal Identification and Investigation was established in 1925 it was provided by law 
that no person should be appointed to a place in the Bureau “until he has satisfactorily 
passed a physical and mental examination, based upon standards fixed by the Super¬ 
intendent with the written approval of the Governor.” 2 The statute law also prescribes 
that all county engineers must, before they can be appointed, pass an examination 
held by the State Department of Highways and obtain certificates of competency from 
that Department. Examinations are given by a Board of Highway Examiners, con¬ 
sisting of “three disinterested civil engineers of established reputation and ability,” 
appointed by the Highway Commission with the approval of the Governor. 3 Although 
these attempts to establish the merit system are encouraging, they have been narrow 
in range; they have been wholly or largely ineffective; they fail to meet the various 

1 Laws, 1933, Chap. 32, Sec. 8. 

2 Stat. 1931, Sec. 4740. 

3 Stat. 1931, Sec. 7S15. 



ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


359 


requirements of a sound merit system; and they leave the examining agencies wide 
open to political manipulation. 

The Oklahoma Library Commission is also constituted by law a Board of Library 
Examiners; and no librarian of a local publicly supported library can be legally ap¬ 
pointed unless certificated by the Board of Library Examiners. 1 Public school teachers 
are certificated after examination ; and provision is made for their training at public 
expense. The provisions applicable to teachers and librarians have been more effective 
in practice than the others just mentioned; but they apply, in the main, only to par¬ 
ticular classes of local employees. 

The fact that needs to be better appreciated in Oklahoma is that all administrative 
officials and employees, except a few policy-making officials, require technical skill, 
should be non-political, and ought to be selected solely because of their qualifications, 
training, and experience. 

SALARY CONTROL 

When a state undertakes to put its administrative agencies on a sound service 
basis, it generally finds that it has to overhaul and modernize its salary system. 
The present survey does not include a detailed investigation of the duties and respon¬ 
sibilities of each position in the state agencies, and the salary paid for that position. 
In fact, such a study is hardly worth the time and effort it requires unless the state 
has determined to standardize salaries on a business basis. The general condition 
as to salaries can be determined by a much less detailed inspection. 

Job Titles. The question of whether the salary of a given position in a public 
service is fair alike to the taxpayers and to the employee depends' not on the title that 
the legislature or some executive has pinned to the position, but on the duties actually 
performed by the employee in that position and his skill and efficiency. As has been 
repeatedly demonstrated by detailed studies, job titles in a state administered on a 
patronage basis are meaningless. Frequently, the position with the highest title and 
the largest salary goes to the person with the strongest pull, while the employee with 
the modest title and the low salary does the real work. In the red} necktie case pre¬ 
viously cited, a new man, entirely ignorant of the duties and of procedure of the 
position and with little previous experience in the general line of work, comes in at 
the top and- draws the high - salary. Even should he prove equal to the job, it will 
take him many months to master it. In the meantime, the real duties of his position 
will be performed by others, or 1 they will not be performed efficiently. In some instances, 
in Oklahoma, the top man has frankly told a subordinate that he expected the sub¬ 
ordinate to do the work and would hold him responsible for it. One case was cited 
in which the top man rarely visited his office at the Capitol, but devoted! most of his 
time to his private business, a practice which may have been just as well for the 
state, because the subordinate left in charge probably knew much more about the 
state work and certainly was far more interested in it than was his chief. In Okla¬ 
homa, one finds many cases in which the subordinates have to train their superiors; 
and a few cases in which so many changes have been made that there is nobody 
to train anybody. 

Classification and Control. In the state with a permanent administrative service, 
salaries are based on duties actually performed. Briefly, the procedure is this: 

1. The duties and responsibilities of each position are learned by thorough investi¬ 
gation and are recorded in detail. 

2. Positions are put into classes according to duties and responsibilities; and 
class specifications are prepared, as previously described. 

3. The legislature established the salary rates for each class of positions. 

4. A central controlling agency, quasi-judicial in character, enforces the act. 
If a new position is} created, the central agency investigates its duties and places it in 
its proper class, which automatically fixes its salary. If a department head alleges 
that the duties of an old position have been increased, the central agency investigates; 
if it finds the duties have been changed, it reclassifies or re-allocates the position; 


1 Stat. 1931, Secs. 4924-25. 




360 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


if it finds that the duties have been changed, it re-classifi.es or re-allocates the position; 
it refuses to re-allocate the position. From time to time it makes “a personnel audit” 
of a department, re-examining the work of each position and ordering any changes 
in classification or salary that the audit may show to be necessary. The law requires 
that no salary shall be paid unless and until (1) the control agency has classified 
the position and thereby determined the salary, and (2) the control agency certifies 
that the person who occupies the position has been selected in accordance with the 
merit law. In some states and municipalities each payroll or pay claim has to be 
examined and approved by the personnel control agency before any warrant for 
salary can be legally drawn. Any disbursing officer who violates the law becomes 
personally liable for the illegal payment and the state can recover from him or his 
bondsmen. 

The national government adopted this system for salary control in the administra¬ 
tive service at Washington through the Classification Act of 1923. Since then Congress 
has appropriated, for each office covered by the Act a lump sum for all salaries, 
“to be expended in accordance with the Classification Act cf 1923 as amended.” Congress, 
in establishing the temporary emergency agencies, saw fit to exempt many of them from 
the Classification Act; but President Roosevelt by executive order applied to them 
the essential provisions of the Classification Act in so far as the method of fixing 
salaries is concerned. 

The Statutory KolL Oklahoma uses for most of its departments at the Capitol, 
what is commonly termed, “the statutory roll” method of appropriation for salaries; 
that is, the legislature specifies in detail each position that the agency shall have 
and the exact salary that shall be paid for that position. The appropriation is for 
two years. Accordingly, the head of the office must organize his work in accordance 
with the rigid frame work thus fixed by the legislature. If he knows that a different 
organization would give, far better results for the same money, he is powerless to 
make the needed change. A concrete example, not taken from Oklahoma, will illustrate 
the point. An old statutory roll furnished the chief auditor with three men at $1,800, 
and they could not handle the volume of work involved and things were running be¬ 
hind. He found that each man was spending more than two-thirds of his time on 
detailed verifying of additions and extensions. They were costing the government 
in all, $5,400. For that amount he could employ one chief assistant at $2,400 to do 
all the high-grade work, and do it better, and three calculating machine operators at 
$1,000 to verify all additions and extensions. That setup would snap the work out 
on time with, no added cost to the state; yet he had to wait for the next appropriation 
act before he could get the necessary change in his statutory roll. Before the passage 
of the national Classification Act, Congress used the statutory roll for many of the 
federal agencies. Honorable Charles P. Niel, then United States Commissioner of 
Labor, told the appropriation committee of Congress that if they would remove the 
statutory roll straight-jacket and give him two-thirds of the existing salary appropria¬ 
tion in a lump sum, they) could save the taxpayers one-third of the appropriation, and 
with the remaining two-thirds he could do more and better work. Practically every 
experienced administrator knows that the statutory roll hampers, if it does not prevent, 
developing an effective organization and procedure. Progressive legislatures have 
adopted far more effective methods of salary control that promote rather than impede 
good administration. 

The Salary Range. Modern salary acts generally provide for each class of posi¬ 
tions, and one fixed flat salary as. in Oklahoma, but a range cf salaries. To illustrate 
Oklahoma fixes the salary of what are junior stenographers at $1,200 for some de¬ 
partments and at $1,500 for others. If these wages arel accepted as at. about the right 
general level, a modern salary act would probably provide a salary range for the 
class “junior stenographers” something like this: -$1,200, $1,260, $1,320. $1,380, $1,440, 
and $1,500. 

The new junior stenographer, just starting, would begin at $1,200. As she learned 
her duties and became more valuable, her salary would be gradually advanced, in 
accordance with the method prescribed by the salary law; but in no case could she 
receive more than $1,500 as a junior stenographer. If she was so efficient as to be 
selected for responsib’e duties as a stenographer-secretary, her new duties wculd put 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


361 


her in the senior stenographer class, with a salary range $1,560, $1,620, $1,680, $1,7*40', 
and $1,800. Once again she would start at the foot of her class, at $1,560, and work 
her way up in accordance with the rules laid down by the salary act. 

No one uniform method of controlling salary advances within the salary range 
established for a given class has been adopted by all' governments and private employers 
who are using such ranges. In general, however, both length of service and efficiency 
are 'considered. England gives the advance regularly, after fixed intervals of service, 
unless the chief of the office makes an adverse report against the employee; and in 
general, foreign countries make length of satisfactory service the controlling factor. 
In America, more weight has been attached to efficiency and various systems of 
efficiency or service rating; but even here a certain length of service is generally re¬ 
quired before an employee is eligible for an advance and then the law provides that 
the employee may be advanced only one step at a time. One gets the impression that 
in private corporations the rules are less rigid and more is left to the discretion of 
the officials. Practically everyone agrees, however, that the employee should have a 
positive incentive to be efficient and to remain in the service. 

Size of Salaries. When a state drafts a salary standardization bill, it ordinarily 
gets interested in the principles which should governi in determining the general level 
of salaries. For entrance classes, into which young people come on first working for 
the government, it is generally agreed that ordinarily the initial salary should not 
be materially higher than the better: private employers are paying for comparable work. 
The idea is that if a boy or girl gets into the government service and does not lake 
it, he or she should have no inducement to remain because the salary is materially 
higher than other employers will pay for like work. If the employee does not like 
his work, the government administrator and the personnel man want him to quit; and 
the sooner he does it the better for him and for the government. Then, too, if the 
salaries for the numerous lower class positions are materially above prevailing rates, 
the jobs become juicy prizes and the patronage bees seek the honey. From the budget 
standpoint, high rates for the numerous low class positions mean heavy expenditures; 
for it is the salaries in the numerous positions that really determine the aggregate 
amount of expenditure for salaries. It is curious how little the top salary rates in¬ 
fluence the aggregate. 

The state will, however, meet one serious question when it attempts to apply 
this principle of the “prevailing rate among the better private employers,” The pre¬ 
vailing rate may be below a reasonable minimum wage, a wage that will permit the 
employee to live 'in accordance with what is called “a health and decency standard.” 
Then will come those questions as to whether the employee has dependents or not 
and whether the minimum wage is to support one individual or a family. Australia 
has taken that bull by the horns and pays no employee less than the minimum health 
and decency minimum wage for a single person. If an employee has dependents, and 
his wage is less than the minimum health andj decency standard for that number of 
persons, it pays him a special and personal bonus based on the number of dependents. 
If the basic salary is high enough to support a family, there is no bonus for depend¬ 
ents. Several European countries have used somewhat similar devices. Now that the 
United States is considering various forms of social insurance and is attempting to 
provide economic security, it is possible that devices of this type may be tried by 
progressive states in this country. 

No American government has ever tried to pay its upper administrative, profes¬ 
sional, scientific, and technical workers, salaries equal to those paid by the better- 
paying private corporations for comparable work; and in no case on record has any 
legislative committee or salary and wage commission even considered doing it. The 
upper salaries in the public service in this country are all low, compared with' those 
in private industry. That is why a public personnel man generally asks the promising 
youngsters who seek his advice about entering public service whether they are ambitious 
to be rich or even well off. If that is their ambition, the public service is no plajce 
for them. Thus there is no real guide for determining the top levels. The Congres¬ 
sional Joint Commission on Reclassification of Salaries, which did the initial work 
upon which the Classification Act of 1923 was based, considered salaries of university 
professors as comparable and significant; and the federal scale, although somewhat 


362 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


lower than that of the great endowed universities, is otherwise comparable with that 
of the better-paying universities of the country. The salaries now paid for the higher 
responsible positions in Oklahoma are extremely low; so low, in fact, that the state 
would in normal times have difficulty in getting and retaining competent employees 
to direct the work of the administrative services. 

Salaries anti Cost of Living. Another question that always comes up in salary 
legislation is: “What shall be done with respect to fluctuations in the cost of living 
and changes in the economic conditions of the country?” Government salary rates tend 
to be rigid and irresponsive to economic conditions. A government employee who 
keeps his job may be relatively well off in hard times and relatively poor in good 
times; but there is a fly in his ointment. When times are good, no< great public clamor 
is raised to increase his salary scale; but when times are bad there is a strong de¬ 
mand not only that his salary; be cut but that his job be abolished. When the tax¬ 
payers are hard hit themselves, they have little patience with the argument chat 
stability of employment and certainty of wage are major compensations of the public 
service. With hundreds of teachers and other employees paid in warrants that cannot 
be cashed except at a discount, with many furloughs without pay, and many dismissals 
because of reduction of staff, the government recruiting officer is deprived of one of 
the principal arguments in favor of the public service. Not in every state can the 
Supreme Court declare unconstitutional salary cuts carried in an appropriation bill, 
as was done in Oklahoma. 

In several foreign countries the employees are paid a fixed salary, plus a cost of 
living bonus, the amount of which is adjusted each year in accordance with the cost 
of living index. St. Paul, Minnesota, has for some years adjusted its salary schedule 
according to the index. During the World War, the federal government used a cost; 
of living bonus for the old establishments. Congress each year fixed the bonus, using- 
percentages of basic pay the first year, and flat sums after that until the Classification 
Act was passed. That Act contained no provision for adjustments, but only required 
the classifying agency to report on needed salary changes. Twice the Congress amended 
the Classification Act, partly to adjust salaries upward because of changes in the 
cost of living. During the present depression Congress cut the salaries of the federal 
employees, with the provision that the President should from time to time readjust 
the salaries upward in accordance with advances in the cost of living. Sentiment 
among employees, economists, and students of public administration has in the past 
been much divided on the desirability of automatic cost of living adjustments. The 
whole subject should be restudied in the light of the bitter experience of the past few 
years; but it would seem as if the arguments in favor of a fixed salary, plus a cost 
of living bonus, with the bonus adjusted annually, are stronger than they once appeared 
and may, as a matter of fact, be in the interest of both the emploj T ees and the taxpayers. 

The fixed sum part of the salary, being- as nearly certain as is the employment 
itself, enables the employee, with reasonable assurance, to enter into these long-time 
contracts that are a part of the ordered life of good public employees, such contracts 
as a lease on a place to live, or a long-term purchase contract for a house, life insurance, 
and some systematic provision for the costs of educating liis children and for the 
rainy day or old age. The balance of his salary, plus the variable cost of living bonus, 
takes care of food, clothing, and those other items the cost of which varies with the 
times. The existence of the flat fixed sum warns him of the danger of letting fixed 
charges exceed it. Some study and observation of the effects of salary cuts on the 
permanent employees of the national government showed that serious trouble came 
where an employee, feeling that his salary was secure, had assumed too high a propor¬ 
tion of fixed charges, especially for the purchase of a house on the installment plan, 
for a lease of a house or apartment, or for life insurance. Another serious trouble 
came where the cut carried the wage below the minimum health and decency standard; 
but here again the principal difficulty was that the costs of shelter could not he re¬ 
duced in proportion to the cuts. These employees had to pay t,hej rent, or the interest 
on the mortgage and taxes; and, when they had done that, there was not enough left 
for food and clothing; they could not buy the products of the factory and the farm. 
The third cause of serious difficulty has no particular bearing on the present question; 
the government employees, like most other people who were lucky enough to keep 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


363 


a job during the depression, had to help out relatives whom the depression had made 
dependents. 

ADMINISTRATION OF A MODERN PERSONNEL SYSTEM 

The success of a personnel system such as has been outlined depends almost entirely 
upon its administration, which in turn depends on the will and the determination of 
the people of the state. Even the best of personnel laws can be largely thwarted 
through bad administration. If patronage brokers get control of the administration, 
the state gets perhaps a little bit better service than it did under the spoils system; 
but it also gets much more hypocrisy. One thing can be said of the present spoils 
system in Oklahoma, there is no hypocrisy about it. Most of it is out in the open 
where it can be seen. The newspapers tell most of the story. When the Constitution 
and the statutes provide for a' really competitive merit system and patronage brokers 
in control are manipulating the system administratively, they must try to keep their 
illegal work dark and appear respectable. If organizations of private citizens inter¬ 
ested in good government are vigilant, and if the newspapers give full publicity to all 
evasions of the law, few dark places are left. 

Associations of Employees. In this connection, it should be said that most gov¬ 
ernments using the new system permit, or even encourage, their employees to organize 
into employees unions. The unions of government employees constitute one of the 
greatest forces for preventing unfair practices in public personnel administration. 
Political favoritism to one employee means injustice to the others; and the great body 
of public servants under a merit system, want, most of all, fairness and honesty in the 
administration. Similarly, a progressive government encourages its. professional 
scientific and technical employees and its upper administrative officials to belong to 
the national organizations of workers in their fields. In fact, where these professional 
organizations have established definite standards for membership, there is a growing 
tendency to require that candidates for appointment in the public service shall have 
qualified for membership in the appropriate national organization. These national 
organizations, or their state or local chapters, help the public in preventing crooked 
administration of the competitive system. 

The Schools. One other safeguard should be mentioned. Under a good system of 
service administration, grade schools, high schools, colleges and professional schools 
are, in part, training boys and girls for the public service. The entrance positions in 
the administrative services are prizes which may be won by the'ir better students. If 
the great body of graduates of the public educational system see the law disobeyed 
and the prizes given on the basis of political pull to persons who did not earn them, 
that influential group of citizens is likely to join a crusade. That is one of the great 
.advantages of the Australian personnel system, which ties its competitions for the pub¬ 
lic service into its public educational system. Within the past five or ten years a de¬ 
velopment in that direction is taking place in America; and the professional, scientific 
and technical schools and associations are beginning to demand that positions in their 
fields shall be filled only by well-qualified persons selected competitively. 

Judicial Aspects. The administration of a competitive merit system involves three 
different types of work: (1) Judicial, (2) legislative, and (3) administrative. 

The central personnel agency, as has already been pointed out. judges the com¬ 
petition. It must see that even handed justice is done to all and that the best man 
wins. In determining the class to which a given position is allocated under the salary 
standardization law, it must hear all the facts and render its decision, another judicial 
act. If also generally has to hear and decide other cases where charges have been 
made that the personnel law has been violated, either by subordinate employees or ad¬ 
ministrative officers. Since, in law, the central personnel agency is not a court but only 
does work in some respects similar to that of a court, its judicial functions are tech¬ 
nically called “quasi-judicial.” 

Legislative Aspects. Rarely does a legislative body prescribe in minute detail all 
the regulations that shall govern its employees. It generally lays dolwn tbe broad gen¬ 
eral guiding principles and gives the personnel agency the power, ordinarily subject to 
the approval of the executive, to adopt detailed rules and regulations. Under such a 
system, Australia has developed a code of administrative law governing all matters 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


364 

of personnel that is ahead of anything that has been done in this country, and appears 
to be fair alike to the employees and the taxpayers. For example, it covers adequately 
the payment of travel and subsistence expenses for employees whose duties take them 
away from their home offices. Oklahoma has a variety of provisions on this subject 
scattered through its statutes; some extremely strict, some wide open. Australia has 
gone into that subject thoroughly and has it under control. Use of state cars by em¬ 
ployees or the payment for private cars used on state business is another subject which 
can well be standardized under the rules and regulations of the central agency; and 
then there is the matter of leave regulations, vacation leave, sick leave, and petty ab¬ 
sences. All the detailed matters of personnel administration may well be placed within 
the quasi-legislative powers of the central' agency. 

Administrative Aspects. The administrative work of the central agency is tech¬ 
nical and requires specialized education and experience. It requires investigations to 
determine the actual duties and responsibilities of positions, classification of positions, 
preparation of class specifications, establishment of suitable entrance qualifications, 
devising of suitable tests and the actual giving and grading of tests, and, in addition, 
maintenance of the necessary records and conducting of necessary relationships with 
operating departments. Some of the older men in this field, of course, learned by rule 
of thumb or trial and error; but the younger men nowadays are university trained in 
public administration and psychology, especially employment psychology, mental meas¬ 
urements and besting methods. The younger men generally have thorough training in 
statistics aiid the incidental mathematics. All this training and experience may sound 
rather foreign to Oklahoma; but Oklahoma has contributed good men in this field. 
Those who are known to the survey staff do not. however, work for the state of Okla¬ 
homa. Of the three, one heads the personnel department of a large private corpora¬ 
tion ; and the other two are occupying responsible positions in the service of the na¬ 
tional government. Unquestionably, Oklahoma could supply its own men if it desires 
to use them in building a sound administrative service. 

The Board and Its Executive Officer. Because of the combination of judicial, legis¬ 
lative, and administrative duties in the central personnel agency, the usual form of or¬ 
ganization is to place control in a board of three laymen. This board then selects a 
technicaTy trained and experienced man as the executive officer, who is responsible for 
the administration. Today the tendency is to designate him “chief personnel officer.” 
The older title was “chief examiner and secretary.” He gives full time to his position. 
In the national government, the three board members are likewise full-time officers; but 
in Oklahoma the board members would be required for only part-time work. They might 
either be paid a fixed sum per day when actually employed, with a maximum limit on 
the annual amount, or they might be paid only their expenses. Maryland has operated 
successfully with only a chief personnel officer, called the Commissioner of Public Em¬ 
ployment, and without any board, but many persons believed that success in Maryland 
was due to the fact that it had one Governor continuously for 15 years. It was he 
who gave Maryland service administration and named as Commissioner of Public Em¬ 
ployment one of the outstanding public personnel men of the country, appointed orig¬ 
inally from outside the state to the second position and then promoted to the commis- 
sionership. Australia, started with a board, then tried the one-man head, and later re¬ 
turned to the board because of the legislative and judicial features of the work. In 
Oklahoma, conditions seem to demand a board. 

The central problem is to keep politics and patronage out of the personnel agency. 
To that end, men and women of outstanding ability, force, and character must be se¬ 
lected for positions on the board and must hold their positions either during good be¬ 
havior or for long terms. In the entrance hallway of the United States Civil Service 
Commission at Washington, protected by red ropes running through eyes in brass posts, 
stands an o’d-fashioned desk and chair, which was once occupied by a young civil ser¬ 
vice commissioner, who played an important part in “fighting the spoilsman” and in 
improving the national administration. If anybody wants interesting reading, lie will 
find it in reports of congressional civil service hearings, when patronage congressmen, 
were battling with that militant young commissioner who later became President Theo¬ 
dore Roosevelt. The United States Commission has a great tradition. Many eminent 
men and women have there served their country with distinction. If the people of 


365 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 

\ 

Oklahoma want to replace patronage administration with service administration, they 
must place some\of their best citizens on the personnel board and keep them there; 
and the board must select the best trained personnel man it can find and keep him 
in office in spite of any opposition. 

Set-up of the Board. Several of the older personnel laws provide that not more 
than two members of the board of three shall belong to the same political party; and 
such a provision may be wise in states where parties are so nearly equal that frequent 
changes in party control result. The history of the national commission would seem 
to indicate, however, that the ability, integrity, and force of the commissioners are of 
more consequence than their party affiliations. Curiously, the United States Commis¬ 
sion has in the past 25 years rarely divided along party lines. Many students now ad¬ 
vise against any consideration of party in the selections, because independents and per¬ 
sons who have taken little interest in partisan politics generally make the best com¬ 
missioners. Appointment to the board of one woman noted for devotion to the cause 
of good government has much to commend it. 

How should such a board be selected in Oklahoma? It would apparently face a ] 
Herculean task, since most of the administration is at present so intensely political 
and the patronage system so deeply rooted. One possibility would be to provide by 
constitutional amendment for a board of three to be elected for long terms. At the 
first election, cue member might be elected for four years; one, for eight years; and 
one, for twelve. Every four years thereafter, one member would be elected for a twelve- 
year term. Members of the board would be removed only by impeachment. Vacancies 
could be filled for the remainder of the unfinished term at the next regular election. 
There would be no necessity for an appointment pending the election, because sucn-.a 
board can function with two members or even only one. Oklahoma already has too 
many elective officers; but, even so, there is much to be said in favor of an elected, 
board for this state, provided the people really want to take patronage out of the ad¬ 
ministrative service. If such a system should be adopted, the Constitution should pro¬ 
vide that the candidates be placed upon the ballot only by petition, that no party 
designation be used on the ballot, and that no political party may nominate any can¬ 
didate for the board in its primary. Such a plan would enable, say two thousand 
citizens, to have placed on the ballot the name of a citizen who has outstanding quali¬ 
fications for the place. Of course, two thousand patronage brokers could do the same. 
Then the choice would be up to the people. Members of such a board would become 
the tribunes of the people in personnel administration; and it would be for the people 
to decide what kind of tribunes they wanted. 

Another possibility would be a similar board of three, appointed by the Governor, 
the first appointments being, respectively, for four, eight, and twelve years. Each Gov¬ 
ernor thereafter would make a single appointment to the board during his term, pref¬ 
erably in the middle of his term. Ag a declaration of public policy, the law should 
specify in some detail the qualifications which the board members should possess, should 
prohibit appointments for political purposes, and should prohibit removals except for 
causes, which should be specified in some detail. /'A board, thus appointed and holding 
office continuously through successive executive and legislative terms, might be able 
to lift administrative positions out of politics and put all state departments, institu¬ 
tions, and agencies on an expert service basis. 

The Chief Personnel Officer. The law should require the board to select its chief 
executive officer, the Chief Personnel Officer, by open competitive examination; it should 
broadly and clearly state his qualifications; and it should prohibit any consideration 
of political endorsements or of the political affiliations of the candidates. The people 
of the state would be wise if they provided specifically that residents of other states 
- may be admitted to the examination. If such a course seemed too radical, a provision 
might be added authorizing the board, if it sees fit, to make its choice, not from the 
three standing highest on the list, but from the three highest who were born in Okla¬ 
homa, or educated in Oklahoma, -or had resided in the state for a specified number of 
years! or even from the three highest who are now residents of the state. This exam¬ 
ination would be of the non-assembled type, in which candidates submit a detailed rec¬ 
ord of training and experience on which they are graded. The three highest would 
naturally be called before the board for oral tests. Well-equipped persons from outside 


366 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


the state might be willing to submit their papers in such an examination, even if they 
knew that the board had authority to exclude them from consideration. The law might 
also specifically authorize the board of its own motion to ascertain and record the 
education, experience, and other qualifications of any person possessed of the requisite 
qualifications, and include said records in the competition with or without the consent 
of said person. If such a person were, in the judgment of the board, the best-qualified 
person who had entered the competition, it could offer him the position and he would 
be free to take it or leave it. In some instances, excellently qualified persons at present 
employed by private corporations or by other governments do not wish for one reason 
or another to file applications for another job. It would seem that for high and re¬ 
sponsible positions, the personnel agency should be authorized to enter them in the 
competitions, even if they may not accept. Obviously, in any published test of com¬ 
petitors the names of persons thus entered should not be included; and the rating given 
them should be regarded as confidential unless they are offered and accept the posi¬ 
tion. Then their papers and their grades should become official records open to inspec¬ 
tion. Similarly, in all correspondence and other investigational work relating to such 
a person, the board should make it clear that the person is not a candidate or an ap¬ 
plicant and that the board is considering him on its own initiative. 

In general, the board should seek positively and actively to get the best possible 
people for the administrative service of the state, and not merely to strive to prevent 
incompetent people from getting jobs through pull. 

RETIREMENT OF AGED EMPLOYEES 

States which operate on a patronage basis escape one difficulty; they do not have 
to give much thought to the veteran civil employee who has given his active life to 
the service of the state and is now too old and feeble for effective work. In a spoils 
system state, when a man or woman is too old or feeble to be employed in private in¬ 
dustry, some politician may try to get his old friend on the public payroll, even as the 
superintendent of a state institution, a job which requires a fairly young and vigorous 
man. In Oklahoma, most employees are not of advanced age. A good many have been 
in the state service less than four years, some from four to eight years, and a few 
from eight to twelve years. Those who have served continuously for more than twelve 
years are rare. The state with a service administration has many employees with 20 
or more years of service; they are often active, vigorous men of middle age occupying 
positions of responsibility and possessed of that seasoned judgment that comes with 
years of professional or administrative experience. A time comes, however, when the 
power of the veteran begins to fail through advancing age and it is in the interests 
of the administrative service to replace him with a younger man. For this reason, the 
national government and many states and private corporations have established re¬ 
tirement systems. 

Problems. Unfortunately, both our governments and our private corporations have 
seen the necessity of getting good employees, training them, and keeping them in the 
service for the whole of their working lives long before they have realized that this 
necessary business policy leads to a day when they have deserving veterans on their 
hands who should be retired immediately in the interest of efficient service. They ap¬ 
preciate that they cannot in sound justice turn the veterans off with no provision; and 
yet,, since nobody has given any real thought to the subject, no arrangements have been 
made to finance retirement allowances. When a government goes into this subject, it 
discovers the following facts: 

1. That retirement allowances for veteran employees who should be retired at once 
must be paid entirely from the Treasury of the state. 

2. That with respect to new employees who enter the service after a good system 
is established, it is relatively easy to make provision for future retirement by setting 
aside each pay day a relatively small percentage of their pay in a special retirement 
fund on an actuarial or insurance reserve basis. Such a system is relatively easy to 
handle financially. 

3. That with respect to employees already on the payroll, who are, let us say, 
between 20 and 65 years of age and whose length of service varies from a few weeks 
to 45 years, the problem is more complex, because, 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


367 


a. They\will serve for some time, varying from a few months to almost 45 
years, so that during their remaining years, something can be accumulated 
regularly to purchase retirement allowances. 

b. All have some claim for past service for which no provision has been 
made, and if the claim is to be recognized, payments will have to he made out 
of the State Treasury. 

The state then appreciates that the chief difficulty arises from having to provide 
retirement allowances with respect to past services. Future services can easily be made 
to take care of themselves. If Oklahoma should decide to have an efficient adminis¬ 
trative service and to get, train, and keep good employees, it should at the same time 
establish at once a retirement system on the actuarial reserve basis. On each pay day, 
it should put into the retirement reserve the actuarially determined percentage of each 
employee’s pay so that when the time comes for that employee to retire, the amount 
necessary to pay his retirement fund will be already accumulated in the retirement 
fund. The state can either operate the retirement fund itself; or it can arrange with 
a private insurance company to handle it for the state. Possibly, it could be handled 
through an old age security system such as that now proposed. 

A Retirement System Not a Pension Plan. Through loose use of language such 
systems are often called pension plans. A real pension is a gift or a gratuity. In so 
far as a state gives a retirement allowance for services rendered before the retirement 
system was established, the allowance may properly be regarded as a pension, a gift, 
or a gratuity. With respect to services rendered after the system is set up, the re¬ 
tirement allowance is part of the wage, and is provided for in the wage contract. To 
illustrate, after a sound retirement system has been established on an actuarial reserve 
basis, a girl 22 years of age enters the state service as a stenographer at $100 a month, 
under an employment contract that provides that $95 shall he paid her in cash each 
pay day and $5 shall be deposited! to her account in the retirement fund, to accumulate 
for her a reserve which shall be used to purchase for her a retirement allowance when 
she reaches the retirement age. She buys her own retirement allowance by her work; 
it is part of her wage; only it is paid to her in a different way than most of her salary. 

The Constitution of Oklahoma contains a provision against payment of pensions by 
the state. Generally, courts have held that such a provision does not prohibit the use 
of a wage payment contract that reqiiires a part of the wages to be paid into a retire¬ 
ment reserve fund. The courts have distinguished between a deferred wage system and 
a gratuity system. It is therefore believed that the courts would sustain the constitu¬ 
tionality of an act that set up an actoarial retirement reserve, and absolutely required 
that a certain percentage of each permanent employee’s salary be paid into that trust 
fund to provide for the retirement of the employee. If Oklahoma adopts the policy of 
a trained and experienced permanent administrative service, it should at the same time 
provide for a deferred wage retirement system operated on the actuarial reserve basis 
and providing benefits with respect to all services rendered after the system is installed. 

If such a system is established when businesslike permanent personnel adminis¬ 
tration is set up, the state need pay no benefits with respect to past services. It need 
have no gifts nor gratuities. 

Needed Provisions. Such a system should be operated strictly on the actuarial re¬ 
serve basis, with full actuarial control and periodic readjustment of rates so that the 
reserves will be entirely adequate to meet all claims. Provision should be made for: 

1. A reasonable allowance, say of not less than half-pay nor more than three- 
fourths pay, for the employee who devotes his working life to the service and retires 
at say 65 or 70. 

2. A reasonable allowance for the employees who have to be retired earlier because 
of disability occurring before reaching the retirement age. 

3. Return of the employee’s reserve in the retirement fund in event of: 

a. Death in the active service. 

b. Resignation from the service. 

c. Dismissal from the service, although it may be provided that if the 
employee is short in his accounts, his retirement reserve may be applied, so 
far as may be necessary, to make up the shortage. 


36S 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


The drafting of such legislation and the subsequent operation of the system require 
the services of expert retirement actuaries; and call for similar but greater skill than 
is needed in the establishment and operation of a legal reserve life insurance company. 
Oklahoma has on its statutes a teachers’ retirement act, which was not drafted by such 
experts. Fortunately, it has never been put into actual use because it is aetuarially and 
financially unsound. Oklahoma should have either a sound system or no system; for 
an unsound system means grief for everybody. Although the establishment and opera¬ 
tion of a sound system requires expert service, that service can easily be secured by 
any state that wants to do a good job. 

RECOMMENDATIONS 

The people of Oklahoma should have a trained, experienced, and reasonably permanent ad¬ 
ministrative service in the state and hi local units in order to assure efficient and economical 
public service. 

Except for the few upper positions that involve deciding large matters of policy, all ad¬ 
ministrative positions should be filled by merit, and the entrance positions through open com¬ 
petitive tests. Reasonable permanency of tenure should be had. 

The state should have a State Personnel Board of three members, either elected by the 
people or appointed by the Governor, to be made up of outstanding citizens of the state, loyal 
to the cause of good government. The tenure of board members should) overlap and each 
member should serve for, preferably, tzvelve years. They should be part-time officers. 

The State Personnel Board should select, through open competitive examination, an 
experienced and expert chief personnel officer, who should be executive officer and secretary of 
the Board, and shoidd be immediately responsible for all detailed technical work of personnel 
administration. 

The chief personnel officer, upon appointment, should ascertain and record the 
duties and responsibilities of all administrative positions in the state, classify all posi¬ 
tions on the basis of their duties and responsibilities, prepare class specifications, and 
submit the classification plan to the State Personnel Board. The Board should then 
review and revise the plan and submit it to the legislature, which should review, revise 
if necessary, and adopt the classification plan with the necessary law to govern its 
administration. The chief personnel officer, subject to the general direction of the Per¬ 
sonnel Board, should study the question of salaries and prepare a report with recom¬ 
mendation thereon for the consideration of the legislature. The legislature should pre¬ 
scribe for each class of positions a salary or preferably, a range of salaries that shall 
be paid for positions allocated to that class, and rules to govern salary advancement 
within the prescribed range. 

The legislature should provide that the State Personnel Board, through the chief personnel 
officer, shall audit, preferably pre-audit, every state payroll for the administrative service, and 
shall certifiy (a) that every employee on the payroll has been appointed in accordance with the 
state personnel act and ( b ) that each salary has been fixed in accordance with said act. 

All disbursing officers should be made personally liable for any salary payment 
that may be disallowed by the State Personnel Board, either on the ground that the 
employee has not been selected in accordance with law, or that the salary paid is not 
in accordance with law. 

The legislature should either (1) require that all appointive officers and employees 
of the counties, not under some other adequate system by which they are selected on 
the basis of merit, shall be appointed in accordance with the provisions of the state 
personnel act, being tested and certified by the State Personnel Board, or (2) authorize 
any county to decide, either by popular vote or by action by the board of county com¬ 
missioners, whether such county will place such officers and employees under the merit 
system. County officers and employees, when selected in accordance with the state per¬ 
sonnel act, should be reasonably permanent and should hold office during good behavior. 

The chief personnel officer and the State Personnel Board should work cooperatively 
with the budget, accounting, and purchasing agencies of the state in all matters of 
geneial administration, so that the Governor and the legislature can be fully informed 
and advised of the needs of the state with respect to appropriations and expenditures 
for personal services. 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


369 


When the state provides for a permanent, economical, and efficient administrative staff, 
it should establish a deferred pay retirement system on a sound actuarial reserve basis, and 
should provide that the percentage of each employee’s salary necessary to maintain such a 
reserve shall be paid into the retirement reserve on each pay day. 

In drafting the retirement system act and in the subsequent control of the fund, 
the state should retain an expert retirement actuary at a reasonable rate per day 
actually employed 


CHAPTER XXI 

COUNTY CONSOLIDATION 

In recent years, along with! tlie attention that has been given to the problems of 
local administration, the question of county consolidation has been considered in state 
after state. Consolidation has been widely advocated by students of political science, 

has received the endorsement of leaders in politics, and in a few instances consolida¬ 

tions have actually been effected. One would naturally expect to find the subject 
widely discussed in Oklahoma (where other problems of local administrations have 
received consideration, and where the county has become, except for the municipalities, 
the only unit of local administration. In spite of the Widespread interest in county 
consolidation, however, and in spite of its being advocated for the country as a 
whole, little can be said with confidence! relative to the advisability of a general con¬ 
solidation of counties even within the borders of a single state. 

ELEMENTS OF THE PROBLEM 

It is generally agreed among specialists in various fields that for local adminis¬ 
trative purposes a relatively large county is preferable to several relatively small 
ones. Larger offices serving a greater number of people will permit greater speciali¬ 
zation with less duplication of equipment. The purpose of county consolidation is to 

increase the size of the county and thereby to increase its efficiency as/ an administra¬ 

tive unit. The question which must be answered is, <‘what should be the size of the 
resulting counties? Or to put it another way, how many counties should there be in 
a given area? 

The Question of Size, in 1907 the Constitution established 75 counties in Okla¬ 
homa but stated that the legislature should provide! by general laws (1) for creating 
new counties, (2) for altering county lines, and (3) for the equitable division of 
assets and liabilities when changes were made. The Constitution also provided that 
townships could be abolished by referendum and that townships which had been 
abolished could be reestablished at the next general election. It can be seen that the 
authors of the Constitution contemplated changes in the number and size of local ad¬ 
ministrative units. They did have ideas, however, regarding the minimum size of 
the county. The following limits are stated in the Constitution: (1) No new county 
may be formed of less than 400 square miles of taxable area, or with fewer than 
15,000 people, or with less than $2,500,000 taxable wealth as shown by current tax 
rolls; (2) no existing county may be reduced in taxable area, population or taxable 
wealth below the limits established for new counties; (3) no territory may be trans¬ 
ferred from one county to an already existing county if by such transfer the county 
from which area is taken is made smaller than the one to (which area is added • and 
(4) the legislature may not increase the minimum of taxable area, population or 
taxable wealth. 

It is noteworthy that all of these limitations fix minima for the' size of the county. 
The Constitution also provides that if the aggregate value of taxable property in a 
county should become less than $2,500,000 it may be declared unorganized by a ma¬ 
jority of the votes cast at an election on the question, and he attached to the adjoining 
county with the lowest taxable value. While unorganized, the county is to be in all 
respects a part of the county to which it is attached; and it must remain so until by 
a majority vote of its electors it isi declared to be reorganized. 

Judging from these provisions and from the fact that 27 of the 75 counties es¬ 
tablished by the Constitution have less than the minimum of 15,000 inhabitants, it 
appears that the authors of the Constitution expected the size of the county to in¬ 
crease rather than decrease. 

Optimum Present Size. What is the most desirable size for the present-day county? 
•In a recent study of units of government in the United States an attempt was made to 
answer this question for the country as a whole. 1 The question proved to be indeter- 

1 William Anderson, “The Units of Government in the United States,” Public Administra¬ 
tion Service No. 42, pp. 28-37. 



ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


371 


urinate from a study of the size of the counties in existence. The average area of 
the county in the 48 states ranged from 117.5 square miles in Rhode Island to 8,128 
square miles in Arizona with 958.5| square miles the average size for the entire country. 
Average population ranges from 5,356 in Nevada to 326,893 in Massachusetts, with the 
country’s average 39,617. The average area of the counties in Oklahoma is 901.5 square 
miles and ranges from) 419 in Marshall County to 2,277 in Osage County. The average 
population of the counties is 31,117 and ranges from 5,408 in Cimarron to 221,738 
in Oklahoma County. 

One noteworthy fact was brought out by the statistical survey, namely, that the 
size of the county tends to vary inversely with the population density of the states; 
but to answer the question of size entirely on the basis of statistical generalization 
would be to assume that the size of the present county has been decided on the 
basis of present-day standards, when, as a matter of fact, the standards by which size 
has been determined are as superannuated elsewhere as they are in Oklahoma. The 
alternative approach to the question is to study the effect of area, population and 
taxable wealth, on the administration of the several county functions. 

Location of the County Seat. Area is most important when considered in terms 
of the distance of various parts of the county from the county seat. There are 23 
counties in Oklahoma in which the boundary is at some point more than 30 miles 
from the county seat. In six counties, the most distant point on the boundary is 
more than 40 miles away; and in three counties the distance is about 50 miles. In 
order to provide the most equitable distance to tlie county seat from all points on 
the boundary, the counties should all be squares of equal size with the seat), of each 
county exactly in the center. Of course, consideration other than serial distance makes 
such an arrangement undesirable. Yet it is worth considering that there are a number 
of counties in which a substantial part of the territory included within their bound¬ 
aries is closer to the seat of another county. 

The Constitution provides that no county line may run within ten miles of a 
county seat. Yet, the city limits of Tulsa extend to the boundary of Osage County 
at a point which is 40 miles in a straight line from the Osage County seat. The seat 
of Washington County is almost on the Osage County line at a point which is 18 
miles in a straight line from the seat of Osage County. The town of Lexington in 
Cleveland County is just across the river from the McClain County seat, while the 
seat of Cleveland County is 15 miles away. The seat of Hughes County is less than 
15 miles by road from the Seminole County seat; and the farthest point on the Hughes 
County line is 28 miles in a straight line from the seat of Hughes County. These 
situations handicap administrative officials and add to the cost of such activities as 
transporting prisoners, assessing property, and supervising public healthl and relief. 
They cause inconvenience and unnecessary expense to individuals in paying taxes, ob¬ 
taining licenses and] certificates, recording public information, and filing legal in¬ 
struments. It is obvious that all persons in a county cannot be situated at the same 
distance from the county seat; but situations should be avoided which cause unnecessary 
inconvenience and expense. 

Population and Taxable Wealth. So far as population is concerned, the expecta¬ 
tions of the authors of the Constitution have not been fulfilled. According to a 
recent study of the year-by-year migrations of population by counties in Oklahoma, 
population growth has not kept pace with the natural increase in population, [with 
the result that there has been a net emigration from the state since 1910. 1 There 
have always been at least 18 counties with less than this 15,000 minimum, and at 
present there are 20. On the other hand there is no county in the state where the 
value of its taxable wealth is at or near the constitutional minimum. In 1934, after 
reductions of 30 per cent since 1931, the lowest county valuation was $3,410,497. 
Changed conditions have rendered both of these minima valueless as indications of 
the optimum size of the present-day county. 

Consolidation and! Tax Rates. Taxable wealth is an important factor in deter- 


1 C. Warren Thornthwaite, Internal Migration in the United States, 1935, p. 40. 



372 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


mining the size of the county since besides being an administrative unit, the county is 
also a taxing unit. The total cost of county functions does not vary proportionately 
■with the taxable value of the county. Therefore, the cost of local government per 
dollar of assessed value tends to be higher in counties with low valuation than in 
counties with high valuation. For illustration let us consider a group of seven neigh¬ 
boring counties: Garvin, Pontotoc, Murray, Carter, Johnston, Love, and Marshall; 
and let us suppose that it is desired to raise $700,000 among the seven counties. To 
raise $100,000 per county on the basis of 1934 valuations would require levying the 
following rates: 


County 

1934 Valuation 


Tax 

Rate Required 


Garvin 

$13,774,163 

$7.26 

per 

thousand 

or 

about 

7 mills 

Pontotoc 

13,243,839 

7.55 

per 

thousand 

or 

about 

7.5 mills 

Murray 

5,761,068 

17.36 

per 

thousand 

or 

about 

17.5 mills 

Carter 

20,859,758 

4.79 

per 

thousand 

or 

about 

5 mills 

Johnston 

6,336,904 

15.78 

per 

thousand 

or 

about 

16 mills 

Love 

4,428,322 

22.58 

per 

thousand 

or 

about 

22.5 mills 

Marshall 

5,011,933 

19.95 

per 

thousand 

or 

about 

20 mills 


There is a difference of 370 per cent in the lowest and highest rates required. 
If. the $700,000 were raised on the total valuation of the seven counties a rate of 
10 mills could be levied in each county. 

Now, we have supposed that the same amount would be raised in each county. 
This was merely to provide 'an example in which cost did not bear the same propor¬ 
tion 10 ’ value in every case. Actually, of course, the differences would not be so great. 
If we take the actual payments for governmental costs 1 in these counties in 1932-33, 
the ratesl required on the 1982 valuation are shown in the following table: 


County 

1932 

Valuation 

1932-33 

Government Costs 

Tax Rate 
in Mills 

Garvin 

$14,747,131 

$143,723 

9.75 

Pontotoc 

14,676,489 

137,700 

9.38 

Murray 

6,271,113 

78,647 

12.54 

Carter 

24,258,116 

303,273 

12.50 

Johnston 

6,250,171 

90,437 

14.47 

Love 

4,771,011 

71,639 

15.02 

Marshall 

5,792,644 

76,852 

13.27 


The difference between the highest and lowest rates in the above table is only 
60 per cent, and if the total governmental costsi of the seven counties ($902,271) had 
been spread over the valuation of the entire group ($76,766,675) the rate in each 
county would have been 11.75 mills. Thus, consolidation, by causing tax levies to be 
spread over a larger area than that of a present-sized cohnty, tends to offset the 
differences between localities in the value of taxable wealth. 

Tlie Case for Consolidation 1 . The case for consolidation, then, rests on the fol¬ 
lowing arguments: (1) That many of the present counties are unnecessarily small 
and that an increase in thieir size would result in increased efficiency and economy 
in administration; (2) that an increase in the size of the counties would permit a 
more central location of the county seat in a number of cases; and (3) that increas¬ 
ing the size of the taxing unitsl tends to offset the differences which exist in taxable 
wealth by equalizing the tax rates. 

Of tire primary factors which influence administrative costs, population is the 
most important; but as the population of an administrative .area increases, the per 
capita cost of administration tends to decrease. This is because the larger volume 
of business which accompanies a larger population permits greater specialization of 
employments within the organization, with less duplication of equipment, books and 
records. The economies which result, of course, are reflected in lower costs to the 
individual taxpayer. If we assume the realization of some of these economies in the 
example just gi\ en, the total payments for governmental costs would be smaller. If 


These include all expenditures for county offices, county functions and interest on debt • 
but do not include payments for non-governmental costs, such as principal of debt transfers 
between funds, etc. 











ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


373 

by centralizing some administrative activities they had been reduced, say, to $750,000, 
the tax rate on the basis of the 1932 valuation could have been $9.77 pei thousand, cr 
less than 10 mills. 

OBJECTIONS TO COUNTY CONSOLIDATION 

Although functional specialists are generally agreed that economy would result 
from an increase in the size of thje county, there are many real difficulties in the way 
of a movement to consolidate counties. In the first place, county consolidation is not 
a cure-all for the ills of local administration. As was remarked in discussing the 
internal organization of the county, there is no magic by which the consolidation of 
administrative agencies will effect economies or increase efficiency. Organization is 
not an end of government. It is only the means to governmental ends. Organization 
along whatever lines it is conceived should be carefully studied and developed to meet 
the demands of the particular functions to be administered. One difficulty is that it 
is not always possible to reconcile. economical administration, as an ideal of county 
consolidation, with other ideals of our present form of government. High standards 
of administrative efficiency are seldom compatible with popular and frequent selection 
of officials or with local self-government in general. Another difficulty is that the 
optimum size of the administrative unit, considering the factors of area, population 
and taxable wealth may change considerably nvitli shifts in population or changes in 
wealth, and may never be the same for all functions to be administered. A third diffi¬ 
culty is that a given area may be so unusual in its physical or economic features as 
to require unusual forms of administrative organization with results and costs which 
differ considerably from those in other areas. 

Another way of stating this difficulty is that the consolidation of counties may 
not be the way to achieve the best results. It may be in certain cases that, a county 
should be consolidated with a city, or that certain functions should be organized on 
a regional basis while others are left to be administered on a county basis. A final 
difficulty is that there are certain technical features of administration which do net 
automatically adjust themselves to a plan of consolidating counties. 

Local Self-Government. Local jealousies and the participation of individuals in 
local affairs are perhaps the most serious stumbling blocks in the way of developing 
administrative areas of suitable size. Although improved methods of transportation, 
and communication have increased the size of the neighborhood for commercial and 
social purposes, people in general continue to identify the political locality with the 
neighborhood of horse-and-buggy days. The case for consolidation contains no argu¬ 
ment for abolishing local self-government. It simply argues for the advantages of 
a larger unit of local government. 

The people of Oklahoma are remarkably free from conservatism in this respect. 
They have already identified local administration <with a larger unit of government 
than is common elsewhere. The Constitution provides for submitting proposed changes 
to a vote of the people asi follows: (1) A proposition to establish a new county must 
be approved by 60 per cent of the votes cast; in the territory) proposed to be established 
as a new county; (2) a proposition to change county lines must be approved first by 
a majority, of the electors of the county to which the territory is proposed to be added, 
and second by 60 per cent; of the votes cast in the territory to be transferred. In 
spite of these high percentages, two new counties, have been formed since 1907 and 
ten changes have been voted in county boundaries. Nevertheless, the objective in most 
cases seems to have been to establish a new boundary rather than absorb an old one. 

Equalization. One of the arguments in the case for consolidation is that increas¬ 
ing the size of the taxing unit absorbs differences in tax rates,. This argument can 
also be used against, consolidation; and in all likelihood it would be so used. It must 
be remembered that the voters of all counties concerned must assent to a proposed 
consolidation. Under the provision for establishing a new county, 60 per cent of the 
votes cast in the entire territory must be in favor of the consolidation Under the 
provision for transferring territory, consent must be given first by a majority of the 
electors (not merely votes cast) in the county to which territory is to be added, and 


374 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


then by 60 per cent of the votes cast in the territory to be transferred. In either ciase, 
the vote cast must include those 'who will lose as well as those who will gain by the 
equalization of tax rates. 

These difficulties may not be so great as they appear at first, because, as our ex¬ 
ample showed, the advantage in reduction of rates may develop in all but one or per¬ 
haps two of a group of several counties to be consolidated. If all the economies are 
considered which might result from a consolidation, the number of people adversely 
affected might he small. Nevertheless, if the advantages are enumerated by those 
who- favor consolidation it is certain that they will be discounted by those who oppose 
the movement; and those who oppose may be counted on properly toi display the dis¬ 
advantages. 

Temporary Effects. The movement for county consolidation Originates in the 
recognition of changed) conditions. It is recognized, for example, that distances of 40 
or even 50 miles from the county seat are not now as considerable as distances of 
20 miles a generation ago. There are besides many changed relationships in govern¬ 
ment. The counties have assumed functions formerly performed by the townships. 
The state has taken over the supervision or control of functions formerly performed 
by the counties. Cities have grown up within counties; and city administration in 
the urban areas has taken the place of county and toKvnship administration. Condi¬ 
tions will doubtless continue to change. In the population study previously mentioned, 
the point is made that Oklahoma’s population ‘is sensitive to agriculture and industrial 
changes. 1 In prosperous years, people move to the cities and to the more commercial 
counties. In years of depression, the movement is to the counties where one can farm 
on a small scale at low total cost. 

A general consolidation of the counties in order to find a more suitable size for 
present conditions may result in establishing standards which are unsuited to condi¬ 
tions a few years hence; and in the long run, if the optimum size of the county is 
sought by consolidation, the question of changing boundaries and consolidating offices 
will always be present. 

___ County-City Consolidation. County consolidation proposes to achieve its purpose by 
Increasing the size of the county. Now, as was suggested in the beginning of this sec¬ 
tion, an increase in the geographic size of the county may not be desirable in all, cases 
in which the consolidation of administrative agencies is needed. 

In a county which contains a large city, for example, the differences between city 
and farm will not be) overcome by increasing the size of the county. If the farmers 
do not object to such a move, the city-dwellers are sure to. The latter are perhaps 
less anxious to share in the administrative expenses of higher cost areas than the 
former are to lose control of elections. In such cases, it may be preferable to retain 
the present size of the urban county, or even to reduce its size so that it may be more 
uniformly urban, and to effect consolidations between city and county governments. There 
appears to be a good opportunity in selected cases in Oklahoma for consolidations of 
this type. Tax assessment and collection are already administered by county officers; 
financial control is largely centered in the county excise board; and the administration 
of public health and welfare are county functions. Without these functions, the city 
may be regarded as a number of overlapping taxing districts for police and fire pro¬ 
tection, public works, and schools. An independent school district could as well in¬ 
clude the entire territory of the county, and! allow for abolishment of several school 
districts and school district boards. Consolidation of school districts has been dis¬ 
cussed at length in the chapter on Public Instruction and the advantages of such a 
plan need not be repeated for the purposes of this discussion. 

The city could remain a special taxing district for the other functions just men¬ 
tioned or these functions might be expanded, with careful planning for future develop¬ 
ment, to serve the entire county. Costs, would have to be apportioned, however, on the 
basis of some plan of districts. Of the city-county consolidations which exist in the 
United States the most familiar example is furnished by that of New York City 

’Tliornthwaito, Internal Migration in the United States, p. 40. 



ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


375 


which embraces five county areas. With New York, however, as (with Baltimore, St. 
Louis, and other cities the ease is that of the city expanding until it embraces the 
whole of the county area and largely assumes performance of the county's functions. 
None of the Oklahoma cities is large enough to absorb the surrounding area of the 
county in any short space of time. But as previously suggested the rest of the country 
does not furnish a reliable basis for generalizing about Oklahoma. The combination 
of city and county functions, if attempted in Oklahoma, must be done b.y the method 
best suited to local conditions. 

Functional Consolidation. In counties where the density of population or the 
value of taxable wealth, is low it may well be that increasing the size of the county 
will intensify the difficulties Sf administration. In such cases, it may be preferable 
to organize certain functions on a regional basis, while others are left to be admin¬ 
istered on a county basis. It has been suggested in previous chapters relating to 
public health, public welfare, la'w enforcement and county financial administration that 
provision should be made for a combination of counties where counties singly can 
not maintain adequate administrative agencies. Regional administration is not a new 
idea. Districts which include several counties have long been common in the field 
of judicial administration. The danger that arises from applying this plan to the 
whole field of local activity is that there may be different sized administrative area 
for every local function. The difficulties which such a situation would create in 
budgeting, accounting, reporting, assessing, and collecting taxes are evident. 

Technical Features, Mention lias been made of certain technical features which 
do not adjust themselves automatically to a plan of county consolidation. There are 
many of these features, but the most important relate to the following questions: 
(1) The location of the county ^eat, (2) the use of county buildings, (3) the location 
of the courts and the jails, (4) the division of assets and liabilities, and (5) the 
highway program. 

In the case of a proposed consolidation of counties, perhaps the most dif¬ 
ficult question to settle would be the location of the county seat. The abandon¬ 
ment of the county offices in most of the existing county seats /would probably be 
successfully resisted. The Constitution provides that the question to establish the 
county seat in a new county must be submitted to an election of the qualified voters 
and approved by 60 per cent of the votes cast. The provisions for removal of a 
county seat are as follows: (1) A written petition for removal of the county seat, 
signed by 25 'per cent of the votes cast (in the county for the head of the state ticket 
at the last preceding general election, must be filed with the Governor; (2) the petition 
must be accompanied by an affidavit stating that thd signatures are those of qualified 
voters; (3) the Governor 1 , shall then issue a proclamation calling for a, special election; 
(4) such towns, cities or places desiring to be named on the ballots must file with the Gov¬ 
ernor verified petitions to that effect, the petitions signed by not less than 300 qualified 
electors of the county. A proposal to remove the county seat of any of the present 
counties is sure to meet with practically unanimous opposition of the voters in the 
county seat. As the law now stands, county consolidation is practically impossible if 
it involves the elimination of a county seat. 

County Buildings. The court houses in Oklahoma are all comparatively new. 
There are very few cases, however, in which they are sufficiently large to accom¬ 
modate the additional staff members, records, and equipment which would he required 
to take care of the work of even one more county. A thorough-going consolidation 
would in most cases require the erection of new county buildings. 

Location of the Courts. The county originally served chiefly as a unit of judicial 
administration. It is doubtful if centralization of local courts would also result in 
improved administration. The costs of court attendance, expenses of jurors and wit¬ 
nesses would all be increased by reducing the number of court seats, and a more 
lengthy court calendar would cause inconvenience and added time in disposing of 
cases or would necessitate division of the courts. 

Court House and Jail. Criminal justice especially requires a measure of decen- 


376 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


tralized administration. Criminals on trial or awaiting trial should be confined near 
the place where they are apprehended. Prisoners must be fed, given hospital care, 
and transported to and from the court room. Both the risks and expenses of the 
custody of prisoners are increased when the distance from the jail to the court house 
is made at all great 

County Debts. The Constitution requires that the legislature provide for equitable 
division of assets and liabilities when new counties are established or territory is 
transferred. The townships, thbugh abolished, will remain as special taxing districts 
until their debts: are paid off. It is evident that similar means would have to be adopted 
to pay off the indebtedness of consolidated counties. 

County Highways. The differences between counties in the extent of highway 
construction are an important consideration. To combine counties which have reached 
different stages of highway development, it would probably be necessary to retain each 
county as a special highway district for an indefinite period. 

CONCLUSION AND RECOMMENDATIONS 

By no means all of the many problems which are raised by a proposal to con¬ 
solidate counties have been considered, even by the strongest advocates of such a pro¬ 
posal. The problem at hand is not as simple as providing easier means for con¬ 
solidation. It is to provide a more flexible basis for adapting local administrative or¬ 
ganization to changing conditions. Consolidation of counties is merely one of the 
methods to be considered. It is not a substitute for any of the reforms which have 
been suggested elsewdiere in this report; and it should not be adopted wholesale at 
the expense of other plans more suitable for certain situations. 

It has already been suggested that in very small counties such as Adair, Marshall, 
Murray, and Coal, which find difficulty in meeting their current expenses under the 
present tax limitation, provision could be made for an entirely unsalaried board of 
commissioners. It has also been suggested that counties which do not find it profitable 
to hire a regular county engineer be permitted to hire a state-employed engineer for 
the work ’which was needed. It has been further suggested that a regional con¬ 
troller might be employed in some cases instead of a number of county controllers 
each serving a single county. Similar suggestions have been made relative to public 
welfare and public health agencies and the county attorneys. 

Partial Consolidation. Along the line of this last suggestion, partial consolidation 
might be effected by providing for regional administration of other activities. By re¬ 
taining each of the present county seats as court seats, and as the location of branch 
offices of other departments a large share of the technical objections would be avoided. 
In view of the objections to further centralizing judicial administration, it is doubtful 
in any case if consolidation of counties can include complete consolidation of the 
county courts. 

As an example of partial consolidation we could suppose three counties which 
are ready for consolidation. The new county could have one board of commissioners, 
one county controller, one treasurer, one sheriff, one) county attorney, one court clerk, 
one register of deeds, one assessor, one welfare officer, one health officer, etc., with 
headquarters at one county seat. Branch officers could be kept by as many of the 
officers as needed them in each of the other two county seats. The consolidated county 
would thus have one overhead organization, one county election, one set of accounts 
and reports. It would be one taxing district except for payment of indebtedness and 
for highways. The maintenance of the branch court houses and offices would be more 
expensive than complete centralization; hut partial consolidation would be cheaper 
than no consolidation. 

Need of Research and Planning. Consolidation of counties with careful attention 
to financial and administrative needs should provide the basis for more economical 
county administration; but consolidation should not be attempted without further study 
of the problems which it raises. In the last analysis, it is the local taxpayer who 
is to be satisfied in the matter of local administrative costs. It is useless to urge 
the adoption of programs which are not consistent 'with local objectives. The tax- 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


377 


payers should be fully acquainted with all sides of the question, and should be pro¬ 
vided with unbiased interpretive information by which to compare the proposed system 
with the present one. 

A program for county consolidation should be constructed with an eye to the 
long-run effects. Consolidation should not be allowed to take place whole¬ 
sale, or without proper check to assure the possibility of consistent development in 
local administration. Otherwise, some of the poorer counties might conceivably be 
excluded from consolidation with others and in some cases combinations might be 
effected which would promise no beneficial results. 

The University can assist greatly with the research on which a consolidation 
program should be based. There already exist large counties within the state which 
can be studied as examples of what might be produced by consolidation. Careful an¬ 
alysis. can be made of the administrative costs in such counties by functions! and by 
offices and these analyses can then become the basis of recommended consolidations. 

Under the Constitution the legislature is empowered to enact general laws for 
the establishment of new counties and for changes in county boundaries. A law to 
permit county consolidation and yet furnish suitable restriction on the procedure 
might contain provisions somewhat as follows: 

That two or more counties may consolidate with the approval of 60 per cent of the voters 
of the proposed new counties, as provided by the Constitution. 

That the consolidated county may not exceed a certain maximum size. 

That the consolidation procedure shall be initiated by petition after the general method 
now provided for initiative petitions. 

That a legislative committee shall hold hearings on the question and if approved the 
proposition shall be submitted to the voters at a special election on the question. 

That the question of the location of the principal county seat should be determined by the 
legislature after the consolidation has been approved. 

That the removal or abandonment of the remaining county seals, to be used as court seats 
and branch offices, should be governed by existing provisions of law. 


CHAPTER XXII 

ELECTION ADMINISTRATION 


From incomplete data, it appears that the cost of elections in Oklahoma ranges 
from $350,000 to $400,000 annually. The cost for the current fiscal year may be 
itemized as follows: 

State Expenditures 

Regular primary election, July 3, 1934 
Run off primary election, July 24, 1934 
General election, November 6, 1934 _ 

Total_ 

County Appropriations, 1934-35^ 

Grand Total __$366,650.07 

At these three elections a total vote of 1,628,785 -was cast, at a cost of 22.5 cents 
per vote. In the year 1934 there was a high vote; and hence the cost per vote was 
proportionately lower than in years when only local elections are held. 

This cost is low in comparison with jnany states. It is) not uncommon for it to 
average more than 50 cents, and 'in some cities it approximates $1.00 per vote. On 
the other hand, the cost per vote is lower in a number of states. The) relatively'modest 
cost of elections in Oklahoma; is due principally to the low salaries paid to precinct of; 
fleers. In many other states, election officers are paid several times as much per day 
as in Oklahoma. 

While Oklahoma makes a creditable showing in this respect when compared '.with 
other states, it would be able, with certain obvious changes in its election laws and 
administration, to reduce the cost by more than half, saving approximately $200,000 
annually. The largest item is the precinct cost—salaries of precinct officers, supplies, 
equipment, rental, etc. This could be reduced to approximately half by the simple 
expedient of using larger precincts. Oklahoma lias about the smallest precincts to 
he found anywhere in the country. Many states use precincts with several times as 
many voters as are permitted by law in Oklahoma. The use of larger precincts, 
especially in the cities, would greatly reduce election costs. Precinct costs could also 
be reduced by using fewer others to the precinct, particularly by doing away with the 
use of counters, except when actually needed, and only for the time’ needed 

Another important saving could be made by reducing the overhead election expenses 
'in the state and doing away with special boards and officers and turning over the 
conduct of registrations and elections to regular state and county officers. In this 
way, a saving of at least $50,000 annually could be effected. A reduction in the 
number of elections would not only cut down election costs, but would be otherwise 
desirable. Registration costs could be reduced by a simpler and more effective system 
of records. The la‘w enacted by the 1933 legislature by which the state pays the 
principal costs of state elections appears just and wise. Accordingly, it seems par¬ 
ticularly appropriate that the state enact legislation which will reduce election costs 
to a minimum, consistent with efficient operation and convenience to the voters. 

NUMBER OF ELECTIONS 

The elector who resides in a city of over 5,000 is called upon to vote in three 
elections or primary elections each year: For county and state and national officers 
in thie even-numbered years, and for city and school officers in the odd-numbered years. 
In addition, he may be called upon to vote in special elections. Cities which have 
adopted their own charters may provide for fewer elections for city officers. The run¬ 
off primary is not used in city and school elections in cities of less than 5,000. 

Many states have no elections whatever in certain years, and only two elections 
in others. The excessive number of elections in Oklahoma is caused by the holding 


'‘Estimates by Honorable J. Wm. Coi'dell. 

2 From the financial statement and the estimate of the needs of the 77 counties as cer¬ 
tified to the State Auditor and filed with the Court of Tax Review. 


.$247,891.07 
. 118,759.00' 


$ 82,091.13 
. 81,785.31 

. 84,014.63 











ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


379 


of run-off primaries and the election of most local officers for two-year terms. A re¬ 
duction in the number of elections could be accomplished by providing non-partisan 
elections for cities and towns, as well as school districts and thus eliminating the 
necessity for run-off primaries. In a number of states, no primary election whatever 
is required for local elections in small cities and towns, the candidate receiving the 
highest number of votes being declared elected. It is well recognized that partisan 
politics are entirely out of place in school, municipal, and judicial elections, and in 
many states non-partisan elections have been provided for these offices. In larger 
cities, non-partisan primaries are used to limit the final election to the two highest 
candidates for each office. 

The use of partisan elections for school and municipal officers should be discontinued; and 
non-partisan elections, preceded by a non-partisan primary in larger cities, should be provided. 

The number of local elections could be reduced also by providing for four-year 
terms of office. Four-year terms would not only reduce the number of elections and 
save this expense and bother to the voters, but would also tend to reduce political in¬ 
fluence in public offices. Four-year terms of office are becoming more popular through¬ 
out the country; but not always is attention/ given to making the four-year terms of 
local officers coincide with the four-year terms of state officers so that the elections in 
certain years may be dispensed with entirely. 

The number of regular elections should be reduced by providing, so far as possible, for 
four-year terms of office , with state and county officers elected at the same time. 

All state and local officers should be elected, so far as possible, midway between presi¬ 
dential elections. 

With present federal and state constitutional provisions, the election of certain 
federal and state legislators would still occur at two-year intervals; but the separa¬ 
tion of presidential from gubernatorial and local elections would do much to free the 
state and local units from] the influence of national politics, to make voting more in¬ 
telligent by separating national from state and local issues, and to preserve state rights. 

Special Elections. The existing Oklahoma laws wisely provide for the filling of 
vacancies in most elective offices by appointment until the expiration of the term, or 
until the next election is) held. The better practice is to provide for appointment for 
the remainder of the unexpired term, even if an election is held before its expiration. 
Vacancies in certain offices are still filled by special elections, as in the case of mem¬ 
bers of the state legislature. In many states such vacancies are filled by the county 
commissioners of the county where the vacancy occurs, with satisfactory results and 
without the bother and expense of special elections. 

Vacancies in elective offices should be filled uniformity by appointment by a suitable au¬ 
thority. 

It is not uncommon for special referendum elections to be called. While the use 
of special elections in certain circumstances is entirely justified, in order to separate 
the vote upon such questions from the regular elections or in case of real urgency, 
ordinarily the vote upon such issues should be held in connection with regular elections. 
When special elections are held, their cost should be reduced to a minimum by provid¬ 
ing fewer election officers, shorter hours perhaps, and where feasible fewer precincts. 
In Utah, where such measures are permitted, special elections) usually cost more than 
75 per cent less than regular elections. A step lias already been taken! in this direc¬ 
tion by providing that the counters shall be dispensed with for special elections if 
only one question is submitted 1 or in any special election upon majority vote of the 
State Election Board. The next step /would be to permit the State Board to require 
the consolidation of precincts for special elections called by the state, and permit the 
local authorities to consolidate precincts for special elections called to vote upon local 
questions. The registration books for the separate precincts would remain intact, but 
a single set of officers could handle two or more precincts at a single voting place. 


Taws, 1933, Chap. 199. 



380 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


Another possibility is to< eliminate the use of counters m all special elections. They 
are obviously not needed, unless a very large number of propositions are submitted. 
By these means, the cost of special elections can be made so nominal that moie fre¬ 
quent use of them mightj be justified. It is suggested that the hours from noon until 
eight P. M. in cities, and until seven P. M. elsewhere would be ample. 

The cost of holding special elections should be reduced by eliminating the use of counters 
where practicable in such elections, the consolidation of precincts, and reduction of the hours. 

REGISTRATION 

Records. Registration records are unduly cumbersome. When the voter applies 
to register, a certificate of registration is made out in duplicate and the original given 
to the voter to be retained by him and presented at the polling place if required; and 
the duplicate copy is retained by the registrar and used to make up the precinct reg¬ 
ister. Duplicate copies of the certificates are turned over to the clerk of the county 
board of elections, who files them by precincts, and retains them for sending out to 
the polling place on the day of the election. The duplicate certificates are used at 
the polling place in case the identity of an elector is questioned. He may be required 
to produce bis certificate for comparison with the duplicate on file. 

In addition to the certificates of registration, two lists of registered voters are 
prepared, one by the county election board and one by the precinct registrar, the latter 
being turned over to the precinct election officers before the clay of election for use 
at the polls. The register prepared by the secretary of the county board of elections 
is made up for the entire county, and is turned over to the county clerk for filing 
as a public record. Each of these registers contains a number of items about each 
voter, such as name, date, age, residence, occupation, race, color, and politics. It 
would appear that the county record of registration serves no useful purpose. The 
real registration list is| that made up by thle precinct registrar for use at the polls; 
though it would seem inevitable that this list would not always contain exactly the 
same names as the list of registration certificates sent out to the polling place by 
the county election board. Three separate registration records are kept: (1) The 
precinct register, prepared by the precinct registrar; (2) the duplicate registration 
certificates, maintained by the secretary of the county election board and sent to the 
precincts on the day of election; and (3) the county registration book, prepared by 
the secretary of the county election board, and filed jwith the county clerk. 

A simplified system of registration records along the lines outlined below should be adopted. 

It is recommended, first, that the certificate of registration be discarded entirely. 
Only two or three states provide that the voter shall be given a certificate which he 
may be required to present at the polling place. Such a certificate serves no useful pur¬ 
pose. It is not necessary for identification of the voter. In rural precincts and in 
all but the largest cities, the voter is personally known to at least one member of 
the election board, and there is no problem of identification. In large cities, where 
the voter may not be personally known to the precinct election officers, the use of a 
certificate does not help matters. A person impersonating the voter might present his 
certificate and, in the absence of other means of identification, be permitted to vote. 
There are much easier methods of identifying the voter who is not personally known 
tot the election officers. The signature of the voter, which is compared with that on 
the registration record, is used in many states with satisfactory results. 

The requirement of the certificate has a number of serious drawbacks. The voter 
may lose his certificate, and have to go to the trouble of obtaining a, duplicate. Al¬ 
though no* fee is charged for a duplicate registration certificate, it is an inconvenience 
to the voter and takes the time of the registrar. Doubtless many* voters lose or mis¬ 
lay their certificates and, if called upon to produce them at the polls, would be un¬ 
able to do so. It is) probable that many fail to vote because of such loss. The use 
of registration certificates serves no useful purpose which could not be better served 
through other provisions. 

The practice of issuing a registration certificate to the voter, which he may be required 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


381 


to produce at the polls, should be discontinued. The voter, when he applies to register, should 
be required to sign an affidavit of registration, somewhat similar to the present registration cer¬ 
tificate, upon a card or a loose-leaf form, which zvould constitute the official registration record. 

This form should contain spaces for the name, address, precinct number occupa¬ 
tion, and any other items desired, and an affidavit which the voter would sign, stating 
that he is a citizen of the United States, and that on the day of the next election he 
will be 21 years of age, and have resided in the State of Oklahoma one year, in the 
county six months, and in th(e precinct 30' days, and that to the best of his knowledge 
and belief he is qualified to vote. The item of age is objected to by many voters and 
is not necessary if the voter takes an oath that he is 21 years of age. The items 
of weight, height, color of eyes and hair, are unnecessary if the registration record 
contains the (Signature of the voter, for this alone is the best identification. Banks do 
not write out the items of personal identification about their customers for identifica¬ 
tion purposes, but rely instead upon their signatures. 

The registration record here suggested is similar to that now in use in many 
states which have recently enacted permanent registration la!vs, including Minnesota, 
Nebraska, Iowa, Wisconsin, Michigan, Ohio, Indiana, California, Washington, Oregon, 
and others. If it is desired, duplicate records can be required, one to be kept in thei 
county election office at all times. This is a safeguard against loss or tampering with 
the records, but, as a matter of fact, is not needed. Milwaukee has operated for years 
with only a single election record, which is sent out to the precincts in ordinary wooden 
boxes, with the cards loose (instead of being rodded), and has never had any trouble. 
Oregon has only a single registration record. 

The registration record's should consist of loose-leaf or card records, either with a single 
or with duplicate records. 

On the day of the election the loose-leaf book containing the registration records 
of the precinct should be sent to each polling place. It may be suitably locked to pre¬ 
vent tampering or loss of records. This book would constitute the official register and 
could be arranged in alphabetical order. 1 If duplicate records are kept, it is suggested 
that the duplicate should be arranged alphabetically for the entire county, and thus 
constitute an indexi of voters. 

The use of the original registration records or affidavits of the voters at the polls 
as the official registration list would eliminate the necessity for having a list of 
voters or register prepared by the precinct registrar. It would eliminate to a large 
extent the danger of omissions and discrepancies between the actual registrations and 
the register prepared prior to the election. It makes available for use at the polls 
the actual registration record of the voter, with his signature on it, a desirable feature. 
All of the recently enacted registration laws have also provided for the voting record 
of the voter to be included! also on this record, by an entry of the date of the election 
in a space on the record for that purpose, thug indicating that he voted. By this 
means the task of checking up on 'whether a voter has voted during the preceding two 
years or three preceding elections is made easy; and cancellations for failure to vote 
can be done at a minimum of expense. The use of the duplicate registration records 
as an alphabetical index for the county would likewise avoid the necessity for pre¬ 
paring special county lists of qualified electors each year, as at present. It would 
also provide an index wffiicli may be used to catch duplicate registration in more than 
one precinct, and to locate the registration record of any voter where the voting pre¬ 
cinct is unknown. 

The original registration record shoidd be filed by precincts and sent to the polls as the 
official register, thus avoiding the necessity for preparing special lists. The duplicate should 
be filed alphabetically for an entire county, thus constituting an index. 

Registration Officers. A number of changes in the personnel in charge of registra¬ 
tion are required. The county officer in charge of elections should also have charge 

Tn Milwaukee the precinct records are arranged in street order to facilitate the printing 
of lists of voters hy streets. 



382 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


of registrations. Itf is suggested; that a regular county officer, such] as the county clerk, 
should be in charge of elections. Such officer should not only appoint local registration 
deputies, but also should keep the registration records of the entire county. Local! 
registration deputies should be confined to taking applications and forwarding the 
records to the county registrar* This arrangement, which is common in recent regis¬ 
tration laws, provides local deputies to receive registration applications, but central¬ 
izes the keeping of the official registration records in a county office equipped to main¬ 
tain them. It avoids duplicate records being kept both by a county officer and a pre¬ 
cinct registrar. It has; operated satisfactorily for years in a number of states. 

It may be deemed advisable to make the city clerk the officer in charge of registra¬ 
tions within cities. This is done in a number of recent registration laws. 1 It has the 
advantage to the voter of providing a local registration office. The city clerk may be 
made an ex-officio deputy registrar; or it may be provided that he shjall be the registra¬ 
tion officer of the city, maintaining the records and turning them over to the precinct 
election officers for use at tliei polls. In this arrangement, the county officer in charge 
of elections maintains the records for rural precincts; While city and town clerks keep 
the records for cities and towns. 

The use of a special county registration office distinct from other county offices is un¬ 
wise; and it increases the cost of registration, since it constitutes another office 1 to main¬ 
tain. The work of registration is highly seasonal, and can be done most economically 
when handled by a regular county office -with its other duties. Another advantage of 
entrusting the registration of voters to a regular; county officer is that his office i,s( open 
throughout the year, and the voter always knows where to find it. 

A regular county official, such as the county clerk or register of deeds, should be the regis¬ 
trar of voters for the county, with deputy registrars in rural precincts authorized to take regis¬ 
trations and forward the records to the county registrar. The city clerk of cities should be 
the registrar for all precincts within the city. 

The Time of Registration. At present the registration period is limited to from 20 
to 10 days prior to elections. This period is unnecessarily and unwisely short. Voters 
should be permitted to register any day of the year by applying to the county or city 
registration office or to the local deputy. It is necessary to provide a closing date be¬ 
fore elections, so that the books can be closed and prepared for the election; but persons 
applying alter the c lose of the registration prior to an election should be permitted to 
register, their registration not to become effective until after the election concerned. It 
is the practice in many states to permit voters to register at, any time before the regis¬ 
tration officers. It is, of course, true that few voters actually register until just prior 
to elections; but there is no reason why a voter should be denied the right to) register 
at other times more convenient to him. It is not anticipated that the deputy registration 
officers '.would hold registration sessions; but they would take applications for registra¬ 
tion at their usual placesl of business. 

Qualified persons shoidd be permitted to register at any time by application to a registration 
officer, registration for any election to close ten days prior thereto. 

The method of registration suggested would require new registration records, and 
hence a new registration of voters. It is quite probable that an entirely new registra¬ 
tion would remove from the registration books a good many names of voters who have 
died or removed. It is possible to institute a new, simplified system of registration records 
with a minimum of expense and inconvenience, by placing registration deputies at the 
polls at the general election in 1936, when a heavy vote will be cast, using the existing 
registration for that election, but registering the voters at that time for future elections. 
One registration deputy at each polling place could register all the voters when they ap¬ 
pear to vote. 

Correction of Registration Lists. In any system of permanent registration, the cor¬ 
rection of the lists is of utmost importance; otherwise they become clogged with names 
of persons who have died or moved away. The following methods are recommended; 


^Michigan, Wisconsin, Iowa, Minnesota, and Washington. 



ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


3S3 


1. Cancellation of deceased registered voters through the use of official death reports 
made by the registrar of vital statistics periodically to the county registrar. 

2. Cancellation for failure to vote within a two-year period. 

3. A transfer procedure for voters who change their residence. 

Practically all states with permanent registration of voters require the officer charged 
with the registration of vital statistics to supply the county or city registration office 
periodically—monthly or less frequently—with a list of adults who have died since the 
preceding report. Through this office report, deceased voters are canceled as a matter 
of routine. It is inexpensive, and should be a part of any permanent registration system. 

At present the election laws provide that, any voter (who fails to vote in three suc¬ 
cessive elections shall have his registration canceled. The usual provision in other states 
is that any voter who fails to vote in two years is canceled. Voting at onei election 
within the two-year period serves to keep his name from being canceled. The important 
thing about this procedure is to be sure that it is carried out, and that the voter is 
notified, so that he may re-register if he is still qualified. No provision is made at 
present for the mailing of a form notice to the voter whose registration is about to be 
canceled. This should be done. If the suggested system of registration records were 
adopted, the record of such voter would show thle elections at which he voted, and 
hence the period during which he has failed to vote, thereby rendering it quite simple 
to make the cancellation for failure to vote. 

Transfer of Registration. The transfer procedure under permanent registration is 
important, for there ‘will be more transfers than new registrations after the system 
has once been put into effect. The voter should be able to transfer 1 his registration to 
his new address with a minimum of inconvenience. Many change^ of residence are 
within the same city or county; and it should not he necessary in such cases to pre¬ 
pare a new registration record. The registration records should contain a number of 
spaces on which new addresses may be entered when the voter changes his residence, 
so that they may be shifted to the new precinct, file. This reduces expense and .bother 
to a minimum, and at the same time automatically cleans up the registration books 
of the old precinct, for the registration record is withdrawn from it. 

Under the existing law the voter (who changes his residence must go back to the 
registrar of the precinct of previous residence and have the registrar cancel his certifi¬ 
cate. This is an unnecessary bother and expense, and doubtless is not done in all 
cases. If he still resides within the same city or county the better procedure is to 
permit him to transfer his registration to his new precinct. He may do this by appear¬ 
ing before the city or county registrar or the deputy of his precinct, and signing a 
request carrying the previous address from which he was registered, his present ad¬ 
dress, and the date of removal. In a number of states he is permitted! to mail such 
a request to the registration office without) appearing in person; and his signature is 
compared with that op file to make sure that the request is bona ( fide before the) trans¬ 
fer is made. In several states the registration office is authorized to make transfers 
upon the receipt of reliable information that the voter has moved, such as telephone, 
gas, water, or electric removal notices. In such cases, however, as a safeguard, 
the election office must notify the voter of the transfer of his registration. It may 
appear that transfers should be made only upon flip Written request of the voter; but, 
in actual operation, this* provision for transfer works well, for voters usually neglect 
to attend to the matter until just before an election, and many find themselves un¬ 
registered in their new precincts on the day of election. In some cities the registra¬ 
tion office arranges to get the removal notices of the local utilities, and goes ahead and 
makes the transfers without waiting for a notice from the voter. Thiis is a desirable 
service to tfie voter, and saves the registration office from the accumulation of this 
work just prior to elections. 

When a voter moves from one county to another, it is impractical to have him 
transfer his registration tp the new county unless the registration records are identical 
throughout the state. Even then, he may apply for a transfer on the last, day of regis¬ 
tration before an election; and the necessary delays in getting his registration record 


384 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


from the county of his former residence would create a problem. It is accordingly 
customary to have the voter re-register when he moves from one count\ to another. 
At that time he is required in several states to sign an authorization tc cancel his 
registration in the former county, which is forwarded to the registrar of the former 
county. This procedure is simple, effective, and saves the voter a great deal of trouble. 

The voter who changes his residence within the same county should be permitted to trans¬ 
fer his registration by filing with the registration office a signed request, stating his old and 
new addresses. The voter who moves from one county to another should be permitted to regis¬ 
ter in the new county only after signing an authorisation to cancel his registration in the coun¬ 
ty of his previous residence, which authorisation should be forwarded by the county registrar 
to the similar officer of the county of the voter’s previous residence. 

Signature at the Polls. In addition to these provisions for the correction of the 
lists of registered voters, it is also desirable to require each voter to sign his name 
at the polls, which may be compared with the signature on the registration record. 
It should be the duty of the election officers to make such comparison before the 
voter is permitted to vote, except in cases where the voter is personally known to 
them. In a number of states where it is used the signature has proved to be a great 
protection against voting frauds. Any person fraudulently attempting to> vote under 
the name of another person would incur great danger of detection and punishment. 
This provision, in connection with the cancellation for failure to vote, constitutes a 
real protection against voting frauds. 

The signature requirement, however, may be objected to upon the ground that 
many voters are unable to sign their names. As a matter of fact, this is not the 
case. Most persons are able to sign their names, even though they may be unable to 
read. Persons unable to sign their names may be identified by a brief personal de¬ 
scription, or by the provision that some other person who is a qualified elector in the 
precinct and personally known to the election officers be permitted to .sign for such 
persons. It may also be objected that the requirement of the signature would slow 
up the voting. This has not been the experience in the states where it is used. The 
voter is required to sign the poll book, which he does without any bother or delay. 

The voter should be required to sign his name in the poll book before being permitted to 
vote, and if there is any question as to his identity, his signature should be compared with that 
on the registration record by the election officer. 

Challenges. With these provisions for correction of the lists and for identification 
of the voter at the polling place, there is little need for fear that unqualified persons 
will vote; but it is nevertheless necessary to provide means whereby registrations 
may be challenged. This, to be sure, can be done at the polls by watchers when a 
person appears to vote. If it is desired to make other provision, qualified electors and 
registered voters should be permitted to file challenges with the county registration 
officer. The present provision, however, which authorizes the county registrar to sum¬ 
mon the voter to appear before him to prove his qualification, i s fraught .with danger 
of political manipulation and abuse. A clever political machine could file thousands 
of challenges against voters for the opposite party, and cause many of them to be 
removed upon non-appearance. The power of the county registrar in case of challenge 
should be limited to attaching a challenge notice to the registration record, which 
challenge would be decided by the precinct election officers if the challenged voter ap¬ 
peared to vote. The person making the challenge should be required to state the specific 
grounds of the challenge. 

The procedure for challenging a registered voter should be changed to provide that when 
two electors make such a challenge the county registrar shall attach a challenge notice to the 
registration of the voter concerned; and such voter shoidd not be permitted to vote until he 
removes the challenge by appearing before the precinct election officers and complying with 
the provisions governing challenges. 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


3S3 


ELECTION OFFICERS 

Under existing election laws, there is a State Election Board, consisting of three 
members, appointed for a term of two years by the Governor by and with the advice 
and consent of the Senate, from lists of five persons submitted by each of the two leading 
political parties. These three members are paid $6.00 per diem, for not to exceed 50 days 
annually, plus expenses. The secretary of the State Election Board is also the secretary 
of the Senate, and receives a salary of $3,000 annually. 1 

The county election board consists of three members; one member, the secretary, 
appointed by the State Election Board and two members selected by the two political 
parties receiving the highest number of votes at the last general election. The mem¬ 
bers receive a per diem of $4.00 for not to exceed 20 days each year; the secretary is 
paid in addition a s'alary which in counties of 15.000 population and less is $50 1 annually 
and in other counties is $50 plus $25 for each additional 5,000 population or major 
fraction thereof. 

The precinct election board consists of three persons, an inspector, a judge, a 
clerk. They are appointed by the county board of elections upon the recommendations 
of the two leading political parties; and not more than two of the' precinct officers 
shall be from one political party, unless “it is impossible to secure a man qualified to 
attend to the duties of the office from the ranks of the other party.” The precinct officers 
are appointed for four-year terms. Vacancies are filled from the party lists by the 
other members of the precinct board. The compensation is $2.00 per day, except that 
the inspector is also paid mileage and time for going after and returning the election sup¬ 
plies. The salary of the inspector is limited to three days for each election. The 
county election board designates 'which positions each member shall fill; but the pre¬ 
cinct board may change these assignments. The precinct election board selects four 
counters to be “equitably distributed” between the two leading political parties, not 
more than three to be from one political party unless it is impossible to find a quali¬ 
fied man from the other party to serve. All precinct officers must be residents of 
the precinct. 

The two most significant features of this election machinery are: (1) The use 
of special officers in the state and the counties instead of regular officers; and (2) the 
appointment of election officers upon the official recommendations of the political parties. 
The conduct of elections is highly seasonal. There is no work to be done except 
just immediately prior to an election, and for a few days thereafter. Obviously, it is 
uneconomical to provide special offices to perform thiese temporary functions. The 
better practice, which is followed generally throughout the country, is to give the 
state administrative functions in connection with elections to the Secretary of State, 
and the county functions to a regular county officer, such as the county clerk. This 
practice avoids the maintenance of a special office for a few days’ work during the 
year, but provides an office which is open throughout thej year to serve citizens in any 
matter relating to elections. The election matters both state and county can be handled 
more economically and efficiently by a regular office as an extra function than by a 
special office. 

Bi-partisan election boards, appointed upon the recommendation of political parties, 
are used in a number of states and have generally been unsatisfactory. They do not 
provide the supposed protection against election frauds, as shown by election crimes 
in many parts of the country under bi-partisan administration. The real effect of laws 
of this kind is to turn over the conduct) of elections to the party organizations to be 
used as political spoils; with the result that incompetent and even corrupt persons are 
sometimes appointed to reward them for party service. Under the best election ad¬ 
ministrations 'in this country, there are no provisions for the appointment of election 
officers on the recommendation of party organizations; and such officers are selected with 
more attention to their ability. Party organizations feel no responsibility for thei ap¬ 
pointment of competent persons; but they use these positions to build up the party or¬ 
ganization. It is questionable public policy, to say the least, to turn over the selec¬ 
tion of election officers to organizations whose primary interest is in the winning of 


^3,600 according to statute, but $3,000 in budget. 



386 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


elections. Common sense would dictate that partisans, selected by the party machines, 
are the last persons to be used as. election officers. The best type of electiotn officers 
in this country are to be found in communities which make no attempt to represent 
the parties, much less to turn over appointments to them. This is true of the cities 
of Omaha and Detroit, the State of California and other sections of the country. 

The Secretary of State should be made the administrative officer in charge of elections for 
the state. He should exercise the powers of the State Election Board (except the appointment 
of county election boards); and in addition he should be given authority to issue rules, 
regulations, and instructions governing the conduct of elections, in conformity with state law. 

The county clerk or register of deeds should be in charge of elections within the county, 
performing all of the duties now performed by the county election board and the registrar of 
voters of the county. This officer should appoint all precinct officers, without being limited 
to the names submitted by the party organisation; and he should provide the necessary instruc¬ 
tions and supplies, and maintain the necessary records. 

It may be objected, however, that the Secretary of State and the county clerk are 
elective officers, and accordingly would have charge of the conduct of their own elec¬ 
tions. If the recommendations made in this report are adopted, both of these officers 
will become appointive. In any event, these officers are in charge of elections in many 
other states; and the fact that they are candidates at certain elections makes little 
difference. The important thing is the definite fixing of responsibility. Ex-officio boards 
may be provided if deemed necessary for the official canvass, consisting of the Secretary 
of State, the Attorney General, and a third person appointed by the Governor for the 
state; and the county clerk, the county attorney, and a third person appointed by the 
Secretary of State for the county. The third member should always be appointed from 
the major political party not represented by the other two members, when the other 
members are from the same political party. 

The per diem of $2.00 for the precinct election officers is doubtless too low to obtain 
capable persons, except those willing to make a sacrifice. A higher salary is suggested, 
with provision for fewer precinct officers and larger precincts in cities. 

OTHER ASPECTS OF ORGANIZATION AND PROCEDURE 

Voting Precincts. The present limitation upon the number of voters to the precinct 
(200), with the requirement that a precinct be divided if it contains 250 voters, is about 
the lowest to be found in the country. In many large cities, the average number of 
voters to the precinct runs from 400 to 500; and a few cities have precincts which average 
nearly 1,000 voters each. In some of these cities, voting machines are used; but, in 
many cities with large precincts, paper ballots are used. Furthermore, few of these cities 
with large precincts have a special force of counters. The regular election officers ordi¬ 
narily count the ballots after the close of the polls. 

Substantial economies would result from increasing the number of voters to the 
precinct. With proper arrangements for handling voters, there would be no delay in 
handling several times as many voters to the precinct as are now permitted by law. 
There is no reason why, given satisfactory records and an adequate number of voting- 
booths, a single set of precinct officers cannot handle up to 1,000 voters without difficulty. 
Likewise, the four counters now provided should be sufficient to count the ballots. If 
the number of voters to the precinct in cities were increased to an average of 400 instead 
of 200 or less, the cost of elections would thereby be cut into half; if the number were 
increased to 600 or 800, the cost would be reduced to one-third or one-fourth the present 
figure. In many cities precincts having from 400 to 800 1 voters, or even a much greater 
number, are the rule. In special elections, as previously pointed out, it should be per¬ 
missible to combine precincts. If school houses are used as polling places, with a single 
school house serving several precincts, it is a simple matter to combine precincts and to 
vote them as one in special elections. In such elections, the vote is always light, and 
usually the ballot is confined to one or a few propositions. In all cities, except a few 
larger ones, all the precincts of the city could be voted in special elections at the city 
hall or some other central location. 

The present provisions limiting the sise of precincts should be modified to permit the 
use of much larger precincts. It is suggested that no limit on the size of a precinct should 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


387 


be placed in the statutes. Consolidation of precincts should be permissible for special elections. 

Ballots. The present statutory provisions concerning ballots are unduly detailed. 
Some economies could be effected by repealing certain of the detailed provisions of the 
law, particularly the requirement that the package of ballots for each precinct shall be 
made up by the State Printer. It would be quite sufficient for the state to supply the 
county office in charge of elections with a sufficient number of ballots, made up in sealed 
packages, say, of 100 each. 

The form of the ballot in general elections is at present the “party column” ballot. 
About one-third, of the states use the true Australian ballot, in which there is no political 
party column or party emblem, all candidates for each office being grouped together 
under the name of the office. This type of ballot, known as the office group or “Massa¬ 
chusetts” type of ballot, has the merit of requiring an individual vote for each office. 
It is supposed to stimulate independent, discriminating voting, instead of straight-ticket 
voting. But the problem as to which of these types of ballots shall be used is largely 
political. Students of election administration look upon the “party column” ballot as a 
perversion of the true Australian ballot, and one that places an unwise premium upon 
straight-party voting. 

It is recommended that the state adopt the office group type of ballot for general elections. 

Supplies, Polling Places, etc. The election law provides for the delivery of the bal¬ 
lots and other supplies to the inspector of each precinct prior to the day of rhe election. 
It would be more economical and unite as safe to> deliver these to the residence of the 
inspector of each precinct and secure a signed receipt therefor by sending a delivery 
truck to the various precincts on the day prior to the election. 

The election law should be amended to permit the delivery of the ballots and supplies to 
the precinct election inspector instead of requiring him to make a special trip to the court 
house for them. 

The provision concerning polling places is unnecessarily detailed, including such 
matters as that not more than five voting booths may be provided in each precinct, and 
the manner in which the polling place shall be roped off. Certainly, there is no necessity 
for limiting the number of voting booths which may be provided in the precinct. Effi¬ 
cient election administration requires that details of this kind be left to the officers in 
charge of elections. 

The provision for printing the ballots in the form of a tablet, with a stub upon 
which the name of the voter is written, his address, and other: particulars if he is: chal¬ 
lenged, is unnecessary, and serves to slow up the conduct of the election. In many states, 
no provision whatever is made for numbering the ballots, but if this is desired, the 
better practice is to print a serial number upon a perforated corner of the ballot, which 
may be recorded upon the poll book after the name of the voter, and the number detached 
before it is deposited in the ballot box. This would give the same protection, without 
as much record-keeping as at present. 

In many state laws, provision is made that the polling places shall be in public 
buildings if any are available, a provision that makes for more dignified and economical 
elections. Many cities hold practically all elections in school houses or other public 
buildings. In order to facilitate the use of public buildings, a number of states permit 
the use of a polling place either in the precinct or in an adjoining precinct; and some 
states permit the polling place to be anywhere within the ward. As a result, several 
polling places are frequently held within the same school building in cities. It may be 
objected that this will require the voter to walk a greater distance to vote than would 
be required if each voting place were within each precinct. The answer is that the 
school is a more dignified place to hold an election than a home, garage, or small store; 
and, if the children walk to school daily, the parents can make the trip without incon¬ 
venience on election days. Where school buildings are used, the voter is usually certain 
of the place to vote; while, if voting places are rented, they are subject to frequent 
changes. 

Provision should be made in the election law for the use of public buildings as polling 
places wherever possible; and the laiv should permit the locating of the polling place in the 
precinct or an adjoining precinct in cities. 


388 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


Hours of Elections. The polls at present are open from 8 A. M. until 6 P. M., ex¬ 
cept in cities of the first class, where they are open from 6 A. M. until 7 P. M. It is 
very desirable that the polls he kept open until 8 P. M. in cities, for many of the voters 
will find it more convenient to cast their ballots after 7 P. M. than during the day. For 
special elections, it would seem unnecessary to have the polls remain open throughout 
the day. The state election authority might well be given power to shorten the hours 
for special elections. 

The polls should remain open for all regular elections until 8 p. in. in cities. 

Primary Elections. Under rhe election laws at present any qualified elector may 
have his name printed on the ballot by submitting a declaration of candidacy signed by 
two other voters, a method that is altogether too easy for persons who have little or 
no support, and who are merely advertising themselves; or who foolishly believe they 
have support. Some provision should be made to limit the campaign to candidates with 
appreciable popular support. The usual provision in other states is to require the candi¬ 
date to deposit a filing fee, or to file a petition signed by a fairly large number of voters. 
The former practice is the better. While it may be urged that it discriminates against 
the poor candidate, the requirement of a fifing fee is merely designed to assure that the 
candidate is serious, has some support, and is not merely self-advertising. No person 
who is not willing or who> is unable to give some assurance of this kind as evidenced by 
the posting of a filing fee, should not be permitted to have his name placed upon the 
ballot. In England and in Canada, the filing fee is substantial and is returned to the 
candidate if he polls a substantial vote as provided by the statute. In this country, the 
states which require a filing fee specify a nominal amount, which is not high enough to 
deter some notoriety seekers. One per cent of the annual salary of the office is the law 
in several states. It is suggested that a larger fee, preferably as much as 5 per cent 
of the annual salary of the office, to be returned to the candidate should he poll, for 
example, 20 per cent of the votes cast for the office would seem to be fair and would deter 
frivolous candidates from filing. Such a provision would limit the campaign to real 
contenders, save expense in printing the ballot, and diminish the confusion of the voters. 

The state lain should require a filing fee of, say, 5 per cent of the annual salary of the 
office, for each candidate who files therefor, to he returned to the candidate should he poll a 
substantial vote, say, 20 per cent of the total vote cast for the office. 

The present provision in the law for the mailing of notices by the State Election 
Board to the county election boards, and by them to the precinct election inspectors to 
be posted, telling of the offices for which nominations are to be made at the primary 
election, would seem to be a meaningless formality and a useless expense. 

Absent Voting. For absentee voting it is provided that the voter who is absent from 
his precint may appear at the polling, places wherever he happens to be within the state 
and apply for an absentee voter’s ballot, writing in the names of the local candidates for 
whom he is entitled to vote. The usual procedure in other states is to require the voter 
to apply to the election office of the city or county where he is qualified to vote, submit¬ 
ting an affidavit that he will be absent from the precinct on the day of the election. 
Upon receipt of such application, the local election office mails him a ballot of his pre¬ 
cinct, with instructions to appear before a notary and execute an enclosed affidavit, mark 
the ballot, and return it. Voters who are within their own precinct but who expect to 
be away on the day of election are customarily permitted to vote ahead of time by making 
application to the local election office. Under these two methods, the voter is enabled 
to vote a ballot of his own precinct. 

The absentee voting provisions should be amended to require the absent voter to apply 
to the election officers of his home precinct for an official ballot, either by mailing his applica¬ 
tion in, or by applying in person before leaving his home precinct. 

Presidential Electors. A number of states have taken the names of the candidates 
for presidential electors off the ballots and have substituted therefor the names of the 
candidates for President and Vice-President. A vote cast for the candidates of a polit¬ 
ical party for these two offices are counted for the candidates of the party for presi¬ 
dential electors, whose names are filed with the Secretary cf State. Thus, much greater 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


389 


simplicity in voting for President and Vice President is introduced; and the voter is not 
confused with the names of the candidates for presidential electors. Election of presi¬ 
dential electors has long been a mere formality. The ballot is shortened and simplified 
by leaving their names off. Six states had enacted such laws prior to 1930, namely: 
Nebraska (1917), Iowa (1919), Wisconsin (1925), Illinois (1927), Ohio and Michigan 
(1929). Other states have followed their example since 1930. Since the Constitution 
of the United States grants to the state legislature the power to determine the method 
of selection of the electors, no constitutional question can be raised against this method 
of selection. 

The law should be amended to provide that the names of the candidates for presidential 
electors of each political party shall be filed zvith the Secretary of State, and the names of the 
candidates for President and Vice-President only be placed upon the ballot, a vote for these 
candidates being counted for each of the candidates of the political party for presidential 
electors. 


CHAPTER XXIII 

ADMINISTRATIVE ORGANIZATION AND REORGANIZATION 


In the other chapters of this report, existing administrative agencies, state and 
local, have been described and appraised and recommendations made for their reorgani¬ 
zation. The present chapter is designed merely to summarize the results of these various 
separate studies. The following tabulations do not show all recommendations. For 
example, those relating to appropriations, internal organization, eouipment, and oper¬ 
ations can not be included. It is sought to present only a general comparative view of 
the present and proposed overhead organizations. 

THE CHIEF EXECUTIVE 

Present Agencies Proposed 

1. Governor No change 

(Elected at mid-year elections, 4- 
year term) 


2. Lieutenant-Governor 

3. Secretary of State 

(Elected, 4-year term) 


4. Adjutant General 


1 . 

2 . 

3. 

4. 

5. 

6 . 

7. 

8 . 

9 . 

10 . 

11 . 

12 . 

13. 

14. 

15. 


1 . 


2 . 

3. 

4. 


No change 

Appointive without term and removable by 
Governor. 

Transfer corporation duties to Bank Com¬ 
missioner. 

Transfer duties of State Election Board to 
Secretary of State. 

Eliminate confirmation by Senate. 


LICENSING BOARDS 


Present Agencies 


Proposed 


State Board of Accounting 
Board of Examiners of Architects 
Board of Barber Examiners 
Board of Chiropody 
Board of Chiropractic Examiners 
Board of Dental Examiners 
Board of Embalming 
Board of Medical Examiners 
Board of Examiners of Nurses 
Board of Optometry 
Board of Osteopathy 
Board of Pharmacy 
Board of Veterinary Medical Exam 
iners 

Board of Registration for Profession¬ 
al Engineers 
Board of Cosmetology 


All secretarial and clerical work to be done 
by the Director of Personnel; or, if such 
office is not set up, by the Secretary of 
State. 


) 


PUBLIC SCHOOL ADMINISTRATION 


Present Agencies 
State Board of Education 

(Superintendent of Public Instruc¬ 
tion ex-officio and 6 members ap¬ 
pointed by Governor with consent of 
Senate for overlapping 6-year terms) 

State Superintendent! of Public Instruc¬ 
tion 

(Elected. 4-year term) 

State Textbook Commission 


, Proposed 

7 members appointive by the Governor for 
overlapping 6-year terms. 


Appointive by the State Board of Education 


Board of Control (for 
physical training) 


military and 


Abolish 

Abolish 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


391 


5. 

6 . 
7. 
S. 
9. 


1 . 

2 . 


3 


4. 


5. 





7 . 


8 . 
_ 9 - 

10 . 

11 . 

12 . 


Board of Trustees (of the state teachers’ No change 
retirement and disability fund) 

State Board of Vocational Education No change 

(State Board of Education ex-officio) 

School district boards Abolish 

(3 or more members, elected) 


County board of education (5 members, 
elected at large. 4-year terms) 

County superintendent of public in- Appointive by county board of education 
struction 

(Elected, 2-year term) 

HIGHER EDUCATION 

Present Agencies Proposed 


State Board of Education 

(In charge of teachers’ colleges) 

Board of Regents of University of Okla¬ 
homa. 

(7 members, appointed by the Governor 
with consent of 'Senate for overlapping 
7-year terms. Removable only by im¬ 
peachment) 


State Board of Agriculture 


Board of Regents of the Oklahoma Col¬ 
lege for Women 

(Superintendent of Public Instruction ex- 
officio and 4 members appointed by the 
Governor with consent of Senate for over¬ 
lapping 5-year terms) 

Board of Regents of the Eastern Oklaho¬ 
ma College 


Board of Regents of the Northeastern Ok¬ 
lahoma Junior College at Miami 

Board of Regents of the Colored Agricul¬ 
tural and Normal College 

Board of Regents of the University Pre- 
• paratory School and Junior College at 
Tonkawa 

Board of Regents of the Oklahoma Mili¬ 
tary Academy at Claremore 

The Co-ordinating Board 

The State Commission of Agriculture and 
Industrial Education 


No change 

7 members, appointed by the Governor for 
overlapping 7-year terms. Removable only 
by impeachment 


Board of Regents of the Oklahoma Agri¬ 
cultural and Mechanical College at Still¬ 
water 

(7 members, appointed by the Governor for 
overlapping 7-year terms. Removable only 
by impeachment) 

Transfer all educational functions to the 
Board of Regents of the Oklahoma Agricul¬ 
tural and Mechanical College 

7 members, appointed by the Governor for 
overlapping 7-year terms. Removable only 
by impeachment 


Abolish, and transfer control to the Board 
of Regents of the University of Oklahoma; 
and, when the Department of Public Wel¬ 
fare is established, transfer to that De¬ 
partment. 

Abolish, and transfer control to the Board 
of Regents of the University of Oklahoma 

Abolish, and transfer control to the State 
Board of Education 

Abolish, and transfer control to the Board 
of Regents of the University of Oklahoma 

Abolish, and transfer control to the Board 
of Regents of the University 

Abolish 

Abolish 




392 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


1 . 


2 . 


3. 


4. 


5. 


6 . 

7. 

8. 


9. 

10 . 


11 . 

12 . 

13. 


1 . 


PUBLIC WELFARE 


Present Agencies 

State Commissioner of Charities and 
Corrections 

(Constitutional and elective, 4-year term; 


Stfate Board of Public Affairs 

(3 members, appointed by Governor with 
consent of Senate, 4-year terms, Bi-par¬ 
tisan) 

Board of Managers of Children’s Institu¬ 
tions 

(5 members appointed by Governor, with¬ 
out terms, now merged with Board of Pub¬ 
lic Affairs) 

Board of Commissioners for the Blind 

(5 members appointed by Governor, 4- 
year terms) 

Soldiers’ Relief Commission 

(3 members appointed by Governor on 
nomination by American Legion, By-par- 
tisan) 

The Commissioner of Pensions 

(Appointed by Governor for 4-year term) 

Emergency Relief Administrator 

(Appointed by Governor) 

Board of Pardons 

(Superintendent of Public Instruction, 
President of State Board of Agriculture, 
and State Auditor) 

Pardon Attorney 

Commission for Crippled Children 

(Dean of School of Medicine, Commis¬ 
sioner of Health, and Superintendent of 
Public Instruction) 

County commissioners 
County judge 


Proposed 

State Board of Public Welfare 

(5 members appointed by Governor for 
overlapping 6-year terms) 

Commissioner of Public Welfare (appointed 
by the Board without term) 

Abolish and transfer welfare functions to 
State Board of Public Welfare 


Abolish and transfer functions to State 
Board of Public Welfare 


Abolish and transfer functions to State 
Board of Public Welfare 

Abolish 


Abolish 

Abolish and transfer functions to State 
Board of Public Welfare 

Abolish 


Abolish 

Abolish, unless necessary for purely co¬ 
ordinating purposes 


Transfer administrative duties to county 
board of public welfare 

Transfer social investigation and supervi¬ 
sion to county board of public welfare 


County relief administrator County board of public welfare 

(3 members appointed by the board of 
county commissioners for overlapping 6- 
year tenns) 

County superintendent of public welfare 

(Appointed by the board from a list of elig- 
ibles submitted by the State Department of 
Public Welfare) 

LAW ENFORCEMENT AND PUBLIC SAFETY 

Present Agencies Proposed 

Attorney General Department of -Justices 

(Constitutional, elective, 4-year term) (Headed by an Attorney General, appointed 

by Governor) 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


393 


2. Board of Governors of State Bar 

(Elected by active members of the Bar) 

3. Superintendent of State Bureau of Crim¬ 
inal Identification and Investigation 

(Appointed by Adjutant General, with 
approval of Governor, without term, re¬ 
movable by Adjutant General at pleasure) 

4. State Fire Marshal 

(Appointed by Governor with consent of 
Senate, 4-year term) 

5. Motor license or tag agents 

(Appointed by the State Tax Commission) 
0. Enforcement officers 

(Appointed by the State Tax Commis¬ 
sion) 

7. Stolen Car Division 

(Appointed by the State Highway Com¬ 
mission) 

S. Oil Inspectors 

(Appointed by the Corporation Commis¬ 
sion) 

9. County sheriffs 

(Elected, 2-year term) 

1U. Municipal chiefs of police 

11. Constables 

12. County attorneys 

(Elected, 2-year terms) 

13. Justices of the Peace 
(Coroners) (Elected, 2-year terms) 


Continue as at present 

Transfer to Department of Justice. Ap¬ 
pointive by Attorney General 


Transfer to Department of Justice. Ap¬ 
pointive by Attorney General 

Abolish, and transfer law enforcement 
duties to Department of Justice 

Transfer some to Department of Justice 

Transfer to Department of Justice 


Transfer to Department of Justice 

Appointive by district court. Transfer law 
enforcement duties to Department of Jus¬ 
tice 

Appointive by the Department of Justice 
in accordance with merit system 
Abolish 

Appointive by Attorney General 

Abolish, and transfer coroner’s duties to 
county attorney 


PUBLIC HEALTH 


Present Agencies 

1. Commissioner of Heabth 

(Appointed by Governor, 4-year term) 


2. County Superintendent of Health 

(Part-time, appointed by board of coun¬ 
ty commissioners) 


Proposed 

State Board of Health 

(7 or 9 members appointed by Governor for 
overlapping terms of 7 or 9 years) 
Commissioner of Health 
(Appointed by the Board, without term) 
County Superintendent of Health 
(Full-time qualified physician, appointed by 
board of county commissioners) 


HIGHWAY ADMINISTRATION 


Present Agencies 

1. State Highway Commission 

(4 salaried members appointed by Gov¬ 
ernor with consent of Senate, 3 for 6- 
year overlapping terms and the secre¬ 
tary-member for 2 years) 

2. Board of County Commissioners 

3. County Engineer 

(Optional) 


Proposed 

3 unsalaried members appointed by Gover 
nor for 6-year overlapping terms. Elimi¬ 
nate the secretary-member 

Restrict to policy making and general su¬ 
pervision 
Mandatory 


CONSERVATION AND DEVELOPMENT 


Present Agencies 

1. State Board of Agriculture 

(President, elected for a 4-year term and 
4 other members appointed by Governor 


Proposed 

Assign regulatory work to a Department 
with a qualified head appointed by the Board 
Transfer all educational work to the pro- 


394 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


with consent of Senate for overlapping 
5-year terms) 

2. Advisory Board of the State Farm and 
Industrial Council 

(Governor, President of State Board of 
Agriculture, and Director of Agricultural 
Extension of Agricultural and Mechani¬ 
cal College) 

3. Conservation Commission 

(3 members appointed by Governor with 
consent of Senate, 4-year terms) 

4. Oklahoma Forest Commission 

President of State Board of Agriculture, 
President of Agricultural and Mechani¬ 
cal College, and 3 other members ap¬ 
pointed by Governor for overlapping 6- 
year terms) 

5. Game and Fish Commission 

(3 members appointed by Governor with 
consent of Senate for overlapping 6-year 
terms) 

6. Geological Survey 

(Under University of Oklahoma) 

7. Flood Control Board 

(3 members appointed by Governor, with 
consent of Senate) 

BUSINESS AND PUBLIC 

Present Agencies 

1. Insurance Commissioner 

(Elected, 4-year term) 

2. State Insurance Board 

(Insurance Commissioner, State Fire Mar¬ 
shal, and a third member appointed by 
the Governor with consent of Senate) 

3. Fraternal Insurance Board 

(Insurance Commissioner, and 4 other 
members appointed by the Governor with 
consent of Senate) 

4. Bank Commissioner 

(Appointed by Governor with consent of 
Senate, 4-year term) 

5. Banking Board 

(Bank Commissioner and three other 
members appointed by Governor with con¬ 
sent of Senate for 4-year terms) 

6. Building and Loan Board 

(Bank Commissioner and three other 
members appointed by Governor with con¬ 
sent of Senate for 4-year overlapping 
terms) 

7. Securities Commission 

(Bank Commissioner, State Auditor and 
Secretary of State) 

S. Secretary of State 

9. Corporation Commission 

(Elected, overlapping 6-year terms) 


posed Board of Regents of the Agricultural 
and Mechanical College 

Discontinue 


No immediate change. In 1939, transfer 
functions to a director appointed by Gov¬ 
ernor, retaining the Commission as an ad¬ 
visory body 

Abolish, and transfer functions to Conser¬ 
vation Commission 


Continue; but possibly eventually abolish 
and transfer functions to the proposed Di¬ 
rector of Conservation 

No change 

Abolish, and transfer functions to Conserva¬ 
tion Commission 

SERVICE REGULATION 

Proposed 

No change until Constitution can be 
amended 

Abolish and transfer functions to Insurance 
Commissioner 


Cbntinue as an advisory body 


No change 


Continue as an advisory body 


( 

Continue as an advisory body 


Abolish, and transfer functions to Banking 
Department 

When Constitution is amended, transfer 
functions relative to incorporations to Bank¬ 
ing Department 

No change 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


395 


LABOR ADMINISTRATION 


Present Agencies 
Commissioner of Labor 

(Elected, 4-year terra) 

Board of Arbitration and Conciliation 

(Commissioner of Labor and 6 members 
appointed by Governor with consent of 
Senate, 3 of these on nomination of Com¬ 
missioner of Labor, 4-year terms) 

Chief Mine Inspector 

(Elected, 4-year term) 

Assistant Mine Inspectors (4) 

(Elected, 4-year term) 

State Mining Board 

(5 members appointed by Governor with 
consent of Senate, “4-year terms) - 

Stfate Industrial Commission 

(3 members appointed by Governor with 
consent of Senate for overlapping 6-year 
terms) 

Advisory Committee (for state insurance 
fund) 

(5 members appointed by Governor for 
2-year terms) 


Proposed 

No change 
No change 


Appointive by Commissioner of Labor with 
approval of Governor 

Appointive by chief mine inspector with ap¬ 
proval of Commissioner of Labor 

No change 

Transfer all except quasi-judicial work to 
Department of Labor 

Retain, if deemed desirable 


LIBRARIES AND R 

Present Agencies 
Oklahoma Library Commission 

Superintendent of Public Instruction and 
4 members appointed by the Governor for 
overlapping 6-year terms) 

Board of Directors of the Oklahoma His¬ 
torical Society 

(25 members elected by the Society, with 
the Governor ex-officio) 

Board of Directors of the State Library 

(Justices of the Supreme Court ex-officio) 

Curator of the American Legion Memorial 

Hall 

(Appointed by the Governor) 

Curator of the G. A. R. Memorial Hall 

(Appointed by the Governor) 

Curator of the Confederate Memorial 

Hall 

(Appointed by the Governor) 

COUNTY EXECUTIVE AND 

Present Agencies 

Board of County Commissioners 

(3 members elected by districts, 2-year 
terms) 

County Clerk 

(Elected, 2-year term) 


jATED AGENCIES I 

Proposed 

No change 

Transfer state appropriations to the Li¬ 
brary Commission. Divide collections be¬ 
tween the Historical Society, the Library 
Commission and the Department of History 
at the University 

Change name to Law Library 
No change 


No change 
No change 

CLERICAL AGENCIES 

Proposed 

3 members elected at large, 4-year terms. 
Reduce salaries. In some counties, elim¬ 
inate salaries 

Appointive without term by board of coun¬ 
ty commissioners. Transfer financial du¬ 
ties to county controller. 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


396 


3. 

Court clerk 

(Elected, 2-year 

term) 

Appointive by 

county or district judge 

4. 

Surveyor 

(Elected, 2-year 

term) 

Appointive, when needed, by board of county 
commissioners 

5. 

Public weigher 

(Elected, 2-year 

term) 

Appointive by 
ers 

board of county commission- 


STATE FINANCIAL ADMINISTRATION 


1 . 

2 . 

3. 


4. 


5. 


6 . 

7. 

S. 


1 . 


2 . 

3. 


4. 

5. 


Present Agencies 
Budget Officer 

(Appointed by Governor with consent of 
Senate, 4-year term) 

State Treasurer 

(Elected, 4-year term) 

State Auditor 

(Elected, 4-year term) 


State Examiner and Inspector 

(Elected, 4-year term) 


State Board of Public Affairs 


Proposed 

State Comptroller 

(Appointive by Governor without term) 

No immediate change; but eventually 
should be appointive by Governor 

Eventually, should be appointive by legis¬ 
lature. Transfer pre-audit, warrant, and 
bookkeeping divisions to proposed State 
Comptroller. 

Transfer to State Comptroller duties rela¬ 
tive to state departmental accounting 
and reporting; and to State Auditor duties 
relative auditing state agencies. Eventual¬ 
ly, abolish and transfer local government 
accounting and reporting functions to State 
Comptroller, and local government auditing 
functions to State Auditor. 

Abolish and transfer pre-audit and book¬ 
keeping divisions to State Comptroller; and 
institutional auditing to State Auditor. 


State Depository Board No change 

(Governor, Attorney General and State 
Treasurer) 

Sta'ie Bond Commissioner No change 

(Attorney General) 

State Fiscal Agency. No change 


STATE PURCHASING, CONTRACTING AND CUSTODY 


Present Agencies 
State Board of Public Affairs 


Proposed 

State Purchasing Agent 

(Appointive by Governor without 


term) 


State Highway Commission 
S*fate Board of Agriculture 


Other State Agencies 


Transfer all purchasing, contracting, cus¬ 
tody, repair and maintenance functions to 
State Purchasing Agent; but. if Depart¬ 
ment of Public Welfare is established be¬ 
fore State Purchasing Agent, transfer such 
functions to that Department and eventual¬ 
ly to State Purchasing Agent. 

Consider eventual transfer of purchasing 
and contracting to State Purchasing Agent. 
Transfer Agricultural and Mechanical Col¬ 
lege purchasing office as - * other purchasing 
and contracting functions to State Purchas¬ 
ing Agent. 

Transfer purchasing functions to State Pur¬ 
chasing Agent. 


Adjutant General Transfer custodial functions to State Pur¬ 

chasing Agent and Capitol police to Depart¬ 
ment of Public Safety (or of Justice). 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


397 


1 . 


1 . 

2 . 

3. 

4. 


5. 

6 . 
7. 
S. 

9. 

10 . 

11 . 


12 . 


13. 


1 . 


1 . 


3. 


COMMISSIONERS OF THE LANDl OFFICE 


Present Agencies 
Commissioners of the Land Office 

(Governor, Secretary of State, State Au¬ 
ditor, Superintendent of Public Instruc¬ 
tion, and President of Board of Agricul¬ 
ture) 

COUNTY FINANCIAL 

Present Agencies 
(State) Court of Tax Review 
State Examiner and Inspector 

State Auditor 

State Treasurer 

Attorney General 

State Depository Board 

Board of County Commissioners 

County Excise Board 

County Treasurer 
(Elected for 2-year term) 

County Clerk 


Proposed 

Appointive by the Governor for overlapping 
12-year terms 


ADMINISTRATION 

Proposed 

Abolish 

Eventually transfer local auditing to State 
Auditor and local accounting control to 
State Comptroller 

No immediate change 

No change 

No change 

No change 

Complete local financial responsibility 

Abolish, and transfer functions to board of 
county commissioners. 

Appointive by board of county commissioners 
without - term. Some change in functions 

Transfer financial functions to the county 
controller 


County Attorney 


School District Treasurers 


No change in financial functions 
County controller 

(Appointive by board of county commis¬ 
sioners without term and removable only 
for cause) 

Abolish, and transfer duties to the county 
treasurer 


PERSONNEL ADMINISTRATION 

Present Agencies Proposed 

State Personnel Board 

(3 members elected for 12-year overlapping 
terms; or appointed by Governor for over¬ 
lapping 12-year terms) 

Chief Personnel Officer 

(Appointive by Board) 


ELECTION ADMINISTRATION 


Present Agencies 
State Election Board 

(3 members appointed by Governor with 
consent of Senate, on recommendation of 
political parties, 2-year terms) 

County Election Board 

(3 members, one appointed by State 
Election Board, two by the two political 
parties) 

Precinct Election Board 

(3 members, appointed by county board 
of elections on nomination of political 
parties, 4-year terms) 


Proposed 

Abolish, and transfer duties to Secretary of 
State 


Abolish and transfer functions to county 
clerk or register of deeds 


Appointive by county clerk or register of 
deeds 


398 

4. 


1 . 


2 . 


3. 

4. 

5. 

6 . 


7. 


1 . 

‘2. 

3. 

4. 


5. 


6 . 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 

7 

County Registrar Abolish and transfer duties to county clerk 

(Appointed by Secretary of the State or register of deeds, and city clerk/ 

Senate) 

PLANNING, RESEARCH AND LEADERSHIP 


Present Agencies 


Code Commission 

(Governor, President pro-tempore of the 
Senate, Speaker of the House, chairman 
of committees on code revision of Senate 
and House, and two members of Board 
of Governors of State Bar) 

Uniform Laws Commission 

(3 members appointed by Governor) 

State Library Commission 

Attorney General 
State Planning Board 

(Governor, chairman of Highway Com¬ 
mission, chairman of Conservation Com¬ 
mission, chairman of State Board of Af¬ 
fairs, and 3 other members appointed by 
Governor for 6-year overlapping terms) 

Judicial Council 

(Unofficial) 


Proposed 

State Council 

(3 members of Senate appointed by Lieu¬ 
tenant Governor, 3 members of the House 
appointed by the Speaker, and 5 members 
appointed by Governor, these to serve over¬ 
lapping 10-year terms) 

Secretary 

(Appointed by the Council) 

Abolish and transfer functions to State 
Council 


No change 

Transfer legislative reference work to State 
Council 

Transfer bill-drafting to State Council 

Abolish and transfer planning functions to 
State Council. 


Continue 

TAX ADMINISTRATION 


Present Agencies 
Oklahoma Tax Commission 

(3 members, appointed by Governor with 
consent of Senate for 4-year terms) 

Court of Tax Review 

(3 district judges designated by Governor) 

Attorney for Tax Commission 

(Appointed by Governor) 

State Board of Equalization 

(Governor, State Auditor, State Treas¬ 
urer, Attorney General, State Examiner 
and Inspector, and President of Board 
of Agriculture) 

County Assessor 

(Elected, 2-year term) 

County Board of Equalization 


Proposed 

No change 


Abolish and transfer functions to Tax 

Commission 

Appointive by Attorney-General 

Abolish and transfer functions to Tax 

Commission 


Elected for four-year term. Work to be 
supervised by Tax Commission 

No change in matter of election. Advisory 
functions to be exercised by Tax Com¬ 
mission 


The above outline lists separate administrative agencies by fields of administration; 
and it contains duplications, since certain agencies perform functions in different fields. 
In the following lists, the present and proposed agencies are given, duplications being 
eliminated and minor agencies excluded. The fact that an agency is listed in the first 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


399 


column ancl omitted from the second does not necessarily mean that such agency is 
to' be eliminated altogether; but in most cases it means that the agency is to be subordi¬ 
nated to some other agency. 

STATE AGENCIES 

Present Proposed 

1. Governor 1. Governor 

2. Secretary of State 

3. Adjutant General 2. Adjutant General 

4. State Board of Education 3. State Board of Education 


5. State Superintendent of Public Instruc¬ 
tion 

6. Board of Regents of University of Okla¬ 
homa 


7. Board of Regents of Oklahoma College 
for Women 

S. Board of Regents of Eastern Oklahoma 
College 

9. Board of Regents of Northeastern Okla¬ 
homa Junior College at Miami 

10. Board of Regents of Colored Agricultural 
and Normal College 

11. Board of Regents of University Prepara¬ 
tory School and Junior College 

12. Board of Regents of Oklahoma Military 
Academy 

13. The Co-Ordinating Board 

14. Commissioner of Charities and Corrections 

15. State Board of Public Affairs 

16. Board of Commissioners for the Blind 

17. Soldiers’ Relief Commission 
IS. Commissioner of Pensions 

19. Emergency Relief Administrator 

20. Board of Pardons 

21. Pardon Attorney 

22. Commission for Crippled Children 

23. Attorney General 

24. Board of Governors of State Bar 

25. Superintendent of Bureau of Criminal 
Identification and Investigation 

26. State Fire Marshal 

27. Commissioner of Health 
2S. Highway Commission 

29. State Board of Agriculture 

30. Conservation Commission 

" 31. Oklahoma Forest Commission 

32. Game and Fish Commission 

33. Flood Control Board 

34. Insurance Commissioner 

35. State Insurance Board 

36. Fraternal Insurance Board 


4. Board of Regents of University of Ok¬ 
lahoma 

5. Board of Regents of Oklahoma Agri¬ 
cultural and Mechanical College at 
Stillwater 

6. Board of Regents of Oklahoma College 
for Women 


7. State Board of Public Welfare 


8. Attorney General, heading Department 
of Justice 

9. Board of Governors of State Bar 


10. State Board of Health 

11. Highway Commission 

12. State Board of Agriculture 

13. Director of Conservation 

14. Game and Fish Commission 

15. Insurance Commission 


400 ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


37. 

Bank Commissioner 

16. 

* / 

Bank Commissioner 

38. 

Banking Board 



39. 

Building and Loan Board 



40. 

Securities Commission 



41. 

Corporation Commission 

17. 

Corporation Commission 

42. 

Commissioner of Labor 

18. 

Commissioner of Labor 

43. 

Mine Inspectors 



44. 

Industrial Commission 

19. 

Industrial Commission 

45. 

Oklahoma Library Commission 

20. 

Oklahoma Library Commission 

46. 

Board of Directors of Oklahoma Historical 
Society 



47. 

Board of Directors of State Library 

21. 

Board of Directors of State Library 

48. 

Budget Officer 

22. 

State Comptroller 

49. 

State Treasurer 

23. 

State Treasurer 

50. 

State Auditor 

24. 

State Auditor 

51. 

State Examiner and Inspector 

25. 

State Purchasing Agent 

52. 

Commissioners of the Land Office 

26. 

Commissioners of the Land Office 

53. 

Cburt of Tax Review 

27. 

State Personnel Board 

54. 

State Election Board 



55. 

State Planning Board 



56. 

State Tax Commission 

28. 

State Tax Commission 

57. 

State Board of Equalization 

29. 

State Council 


LOCAL AGENCIES 


Present 


Proposed 

1 . 

Board of county commissioners 

1 . 

Board of county commissioners 

2. 

Sheriff 



3. 

County attorney 



4. 

County engineer 



5. 

County clerk 



6. 

Court clerk 



7. 

County excise board 



8. 

County treasurer 



9. 

County election board 



10. 

County registrar 



11. 

County superintendent of public instruc¬ 
tion 

2. 

County board of education 

12. 

School district boards 


— - 

1?. 

County relief administrator 

3. 

County board of public welfare 

14. 

County superintendent of health 

4. 

County superintendent of health 

15. 

County assessor 




CHAPTER XXIV 

RESEARCH, PLANNING, AND LEADERSHIP 

The present, chapter is the final one of the survey report; and it seems fitting in this 
place to consider certain of the more fundamental aspects of administrative organization. 

THE NEED OF PLANNING 

The people of Oklahoma are to be congratulated on having recognized, that their 
administrative organization is unsatisfactory and on having instituted, in the present 
survey, a systematic though temporary procedure for improving administration. When 
a state sponsors such a study as this, it has taken an encouraging step and has adopted 
a sound method of ascertaining facts; but, the helpfulness of a survey depends in large 
measure on a clear understanding of its limitations. The present study does not cover 
the entire field of state and local administration; it does not include the legislature; for 
the most part, it does not deal with administrative procedures; as a rule, it makes no 
attempt to decide difficult and controversial questions of policy; it deals primarily with 
overhead organization. Nevertheless, within its restricted scope its recommendations 
are so numerous and, in some cases so drastic, that it is useless to expect that they will 
all be promptly adopted. They must be examined and discussed critically by the people 
of Oklahoma. They need not and should not be accepted as authoritative. They should 
be considered as offering a concrete and practical basis for discussion and as contributing 
some of the materials for a long-time program of administrative improvement. It re¬ 
mains for the people to take these recommendations, make a program out of them, and 
carry out the program, modifying it as new conditions and new needs arise. Moreover, 
even within the relatively narrow field covered by this survey, problems have appeared, 
as indicated in the previous chapters of this report, which require further study. Con¬ 
sidered alone, therefore, this survey would suggest the need of organizing Oklahoma’s 
capacity for leadership, so that the state may be able effectively and continuously to 
criticize and perfect its administrative organization. 

Government, expressing itself through its prohibitions regulations, and administra¬ 
tive services, has become an extremely complicated undertaking. It is extending its 
influence and control more and more to the varied aspects and details of economic and 
social life. The stature law grows so voluminous as to make any reasonable and con¬ 
sistent revision of it exceedingly difficult. Administrative agencies multiply in number. 
Their functions increase and become more technical. Governmental expenditures mount; 
and taxation becomes a problem of the first magnitude. 

Government presents fundamentally a problem of adjustment — the adjustment of 
laws to the needs of individuals and society; the adjustment of taxation to taxable re¬ 
sources, of administrative organization to functions, and of public policies to public 
opinion. This problem of adjustment, however, is not one that is easily solved. The 
various classes and groups of the population hare become interrelated and interdependent. 
A defect or failure in one public service reduces the effectiveness of other public services. 
Scarcely a law is passed nowadays which, when enforced, does not have unexpected con¬ 
sequences. The voting population of a state or of the nation, organized into government 
for self control and self-development, has not yet found a way, collectively, to see 
through and think through its problems. - Society, as well as the government which 
represents and seeks to guide society, has become an intricate mechanism, made up of 
numerous parts, delicately balanced and intermeshed, the operation of each part de¬ 
pending on the operation of others. 

Moreover, governmental organization, like the economic and social organization of 
which it is an inseparable feature, needs continually to be repaired, altered, and rebuilt. 
We are living in an ago of rapid and accelerating change. Governmental policies and 
administrative services, if they are to meet in reasonable measure the demands that are 
made upon them, must adapt themselves to new conditions. Such adaptation, however, 
can not be left to chance, to accident, to undirected and misdirected currents of emotion, 
or to the selfish and shortsighted pressure of organized groups. The adjustment of laws 
and public services to each other and to changing conditions and needs demands a broad 
and a long view. It has become increasingly evident in recent years that , public policy 
must be comprehensively, intelligently, and farsightedly planned. 


402 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


The depression itself may be viewed as a striking demonstration of what can happen 
to a people which is not prepared to plan and control its life to the extent of litilizing 
its own natural and human resources for the general well-being and happiness of its 
members. Aside from the depression, abundant illustrations come to mind of the results 
of unplanned development. One needs only think of the waste of natural resources; the 
losses occasioned by winds, floods, and fires; the persistence of physical and mental 
disease, feeble mindedness, disabling accidents, and crime; an uncoordinated transpor¬ 
tation system; the existence of slums and unwholesome housing; and the insufficiency 
of parks and playgrounds. When one comes closer to the actual structure and func¬ 
tioning of government, one sees a body of law, much of it behind the best thought of the 
age and some of it obviously obsolete but not repealed; an unwieldy and overburdened 
legislature never catching up with its work; administrative agencies, organized and 
functioning according to the traditions of the Jacksonian era; and thousands of local 
units, wasteful, ineffective, perpetuating inequality, and essentially undemocratic. 

The existing chaotic situation, the confusion of counsels, the frequent triumphs of 
selfishness and hysteria, the survival of obsolete ideas and outworn institutions, the 
prevalence of indifference, and the power of inertia—these are both symptoms and 
causes. They indicate the absence of disinterested, intelligent and informed leadership. 
They reveal a serious lag in the adjustment of ideas, of law, and of organization to 
changing conditions and changing needs. They suggest that we have no public program; 
that, as a whole, our collective achievements are inadequate and hopelessly lopsided, that 
we do not put first things first, that we neglect important things, that we do not deal 
with fundamentals, and that we do not visualize our ultimate objectives. In turn, these 
conditions create more lag, more disproportion, morfe lopsidedness, more maladjustment, 
and more confusion. As a people, we are, in a sense, caught in a vicious circle, which 
may be in the end destructive of those values and ideals which have been traditionally 
associated with Americanism and democracy. How can the vicious circle be broken? 
How can the lag in organization and in policy be overcome? How can government solve 
its accumulating problems without creating new and even more critical problems? How 
can progress be synchronized and stabilized? How can orderly evolution be assured? 
Probably no one is wise enough to give final answers to these questions. The best that 
can be done is to suggest certain steps, for which an immediate need seems to be appar¬ 
ent ; namely, the creation and equipment of an agency for continuous planning and for 
the utilization of the research that is essential to comprehensive planning. 

“Planning” is a term that means simply an orderly way of looking toward the 
future, a method of bringing about a result that is believed to be conducive to the gen¬ 
eral welfare. In order that planning may be something more than mere “wishful think¬ 
ing” or the building of castles in the air, it must rest upon facts. Without information, 
planning is worse than useless. Planning, furthermore, must deal with reasonably con¬ 
crete things. It must aim toward definite objectives. 

PRESENT AGENCIES 

Agencies at present engaged in research and planning in Oklahoma are, on the whole, 
inadequate and uncoordinated. 

The Legislature. The legislature is, or should be, the ultimate planning authority 
of the state. If Oklahoma’s law making body were reduced in size, rendered more nearly 
representative of broad population groupings, made attractive to the ablest citizens, 
kept in practically continuous session, and equipped with a technical staff, there would 
probably be no need for a general planning agency outside of the legislature. As it is. 
however, the legislature does not adequately perform the planning function. 

It has not yet acquired the habit of legislating expertly. The changes in administra¬ 
tion which have been described in the chapter on Personnel Administration have greatly 
affected the work of legislators. In the old days, the subjects which came before legis¬ 
latures were much simpler and much less technical than they are today. The legislators, 
without much technical aid and advice, could often master them in the few weeks of a 
legislation session. Today, the members of Congress and the legislators in many of the 
larger industrial states find that they have to have professional and technical assistance 
and advice from experts in special fields. The technical, scientific and professional em¬ 
ployees of the government departments in Washington often spend many days with 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


403 


individual members of Congress and with congressional committees, either as expert ad¬ 
visers or as witnesses before the committees. When highly technical bills are before 
the Senate, it is not unusual for the chairman of the committee in charge of the bill to 
have his expert adviser sitting by him in the Senate, ready to answer his whispered 
questions or to find and give to him the data bearing on the points raised in debate. 
The technical and administrative features involved in modern economic and social prob¬ 
lems have become so difficult and so complex that the Congress of the United States, the 
Parliament of England, and the legislatures of our larger states have tended in recent 
years to settle, by legislative enactment, only large matters of fundamental policy, and 
then delegate to administrative agencies the duty of working out the details in admin¬ 
istrative rules and regulations. Another device, used especially in great engineering 
projects, is for the legislative body to call on experts in administrative department's for 
a report, including plans and specifications, in fair detail. Then the legislature, after 
examining the report, adopts it as governing law by reference to it in the act. The 
legislators who take their responsibilities seriously generally recognize that the legis¬ 
lature must have available to it. technical, professional, and scientific expert informa¬ 
tion and advice, and that often they can only get such information from the specialists 
in the public service. It would seem, then, that proper planning and conduct of legis¬ 
lative work demands close coordination between the legislature and administrative 
agencies. 

Legislative Reference Work. Moreover, most of the states have recognized that, 
for efficient law-making, a legislative reference service or bureau is essential. Well- 
developed legislative reference work usually involves the collection of data bearing on 
subjects of proposed legislation, compilation of material on such subjects for the infor¬ 
mation of legislators, the doing of research when necessary, consultation with law 
makers, and bill drafting. It may include also the compilation, codification, and revision 

of laws. In a number of states, this work is more or less closely identified with a state 

library or is done by a subdivision of the library; while, in some states, it is assigned 
to, or performed by, the Attorney General’s office. Legislative reference work, however, 
is not library service and it is not a purely legal function. 

In Oklahoma, there has apparently in the past been some intention that legislative 
reference service should be rendered by the State Library, which is a law library man¬ 
aged by the Supreme Court. During the recent legislative session, assistance in bill 

drafting is understood to have been supplied by the Attorney General’s office. As a 

matter of fact, Oklahoma has made no effective provision for legislative reference work. 
Such provision should be made; but this function should not be assigned to a library or 
to the Attorney General’s office. It should be established separately from any other ad¬ 
ministrative agency and closely tied in with the legislative branch (including the Gov¬ 
ernor) . 

Investigating Committees. It is an established function of legislature to investigate 
administrative agencies; and frequently interim committees, consisting of members of 
the two houses, are appointed to study particular problems or fields of administration. 
In some states, such interim committees conduct comprehensive research, prepare val¬ 
uable reports, and submit to the legislature a planned program of legislation, sometimes 
accompanied by carefully drafted bills. Special legislative committees do not appear to 
be used in Oklahoma as often or as effectively as in some other states. They may be 
expected, however, to be used in the future more than in the past. 

The Legislative Council. As the interim committee recognizes the need, in special 
fields, of research and planning, so the legislative council recognizes the same need in all 
fields. The increasing burden and difficulty of legislative work, and the short period 
allotted to legislatures for the discharge of their responsibilities have brought a con¬ 
viction that some permanent agency should be established to prepare a legislative pro¬ 
gram and thus facilitate and expedite the task of the law-making body. For this pur¬ 
pose, the Kansas legislature established in 1933 a Legislative Council, consisting of ten 
senators and 15 representatives to be appointed by the president of the Senate and the 
speaker of the House of Representatives, these appointments to be approved by a ma¬ 
jority vote of the respective houses. The president of the Senate is an ex officio member 
and chairman; and the speaker of the House an ex officio member and vice-chairman. 


404 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


The duties of the Council are “to collect information concerning the government and 
general welfare of the state, examine the effects of previously enacted statutes and rec¬ 
ommend amendments thereto, deal with important issues of public policy and ouestions 
of state-wide interest, and to prepare a legislative program in the form of bills or other¬ 
wise. * * *” More specific duties are: “(1) To investigate and study the possibilities 
for consolidations in the state government, for the elimination of all unnecessary activ¬ 
ities and of all duplication in office personnel and equipment, and of the coordination of 
departmental activities, and of methods of increasing efficiency and of effecting econ¬ 
omies. (2) To investigate and study the possibilities of reforming the system of local 
government with a view to simplifying the organization of government. (3) To cooper¬ 
ate with the administration in devising means of enforcing the law and improving the 
effectiveness of administrative methods.” 1 The reviser of the statutes is made secietaiy 
of the Council; and the Council may require the services of the legislative reference li¬ 
brary and may employ such assistants and research agencies as its appropriation per¬ 
mits. The Kansas Legislative Council is not suggested as a model for Oklahoma. It 
is, however, a significant attempt, ancl apparently in many respects a sound one, to 
meet a need which exists in all states. 

The Governor. From some points of view the Governor would seem to be the logical 
planning authority. As previously noted, he is required to communicate information 
and recommendations to the legislature. He must make his first communication, how¬ 
ever, shortly after liis inauguration; the chief executive and the legislature are not 
infrequently at loggerheads; and his program is likely to take on a partisan complexion 
and, because of that fact, to lack permanence. The Governor should play an important 
part in planning; beat it would seem unnecessary and possibly unwise to place it in his 
exclusive control. 

The Code Commission. The 1931 legislature established a Code Commission, con¬ 
sisting of the Governor, the president pro tempore of the Senate, the speaker of the 
House, the chairman of the committee on code revision of the Senate, the chairman of 
the committee on code revision of the House, and two members of the Board of Gover¬ 
nors of the State Bar selected by the Board. It is not clear, however, that the Code 
Commission is a permanent body, although it appears to be. 

Uniform Laws Commission.- The legislature in 1911 established a Board of Com¬ 
missioners for the Promotion of Uniformity in legislation, consisting of three members 
appointed without term by the Governor. This commission, in cooperation with similar 
bodies in other states, perform a useful service. 

Administrative Agencies. Previous chapters have emphasized the need of estab¬ 
lishing in each of the major administrative departments a well-equipped bureau of re¬ 
search. Each major agency should establish and conduct a system of statistical re¬ 
porting ; its own periodic reports should be accurate and informative; and it should 
continuously study its field of service, evaluate the results of its work, and plan for 
the future. Much of the factual material for state planning should be supplied by the 
state agencies; and much of the research necessary for state planning should be done 
by these agencies. But the research and planning of one agency must be coordinated 
and harmonized with the research and planning of others. Gaps must be filled. The 
needs of the state must be seen as a whole. The point of view of the public, the lay¬ 
men, and the taxpayers must be represented. 

The University. The University of Oklahoma should constitute a center of scientific 
research; and the various departments of the University, especially the departments 
of economics, political science, sociology, and law, should, so far as may be consistent 
with their instructional duties, place their expert knowledge at the direct service of 
the legislature, the Governor, and administrative departments. In other parts of the 
country, universities are more and more concerning themselves with the stiidy of con¬ 
ditions in the states where they are located: and they are called upon to conduct sur¬ 
veys, to participate in legislative and executive commissions, and in general to give 
advice and assistance to public officials. The University of Oklahoma has an excep- 


Hteport of Kansas Legislative Council, December 8, 1934. 



ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


405 


tional opportunity to render such service. It should be called upon to do so; and it 
should be ready to answer the call. 

The State Planning Board. The recent legislature established a State Planning 
Boaiah consisting of seven members: The Governor, the chairman of the State High¬ 
way Commission, the chairman of the Conservation Commission, the chairman of the 
State Board of Affairs, and three other members, unsalaried, to be appointed by the 
Governor for six-year overlapping terms. Apparently, the functions of the Board are 
limited to physical developments, such as highways, bridges, waterways, railroad and 
motor routes, aviation fields, power transmission facilities, flood prevention, drainage, 
sanitation, parks, wild-life refuges, and land use. The ex officio memberships on the 
Board and its limited scope are manifest defects. An even more objectionable provision 
of the law is that which gives to the Board power to pass on improvements and property 
acquisitions. A planning agency should have only the functions of planning and the 
coordination and conduct of research necessary to planning. Its only powers should 
be over its own staff and those necessary to insure access to information. It should 
have no administrative powers; and, if it is to be broad in scope and representative in 
character, it should have no ex oliieio members. 

The Judicial Council. A judicial council is predominantly a research and planning 
agency. Oklahoma’s Judicial Council is unofficial; but it should by all means continue. 
It fills an evident need and should be increasingly useful. 

A PROPOSED STATE COUNCIL 

Oklahoma needs a permanent state planning agency, comprehensive in scope, 
equipped to coordinate and stimulate research, to provide much-needed leadership, and 
to place legislation on a sound basis. How such an agency should be set up may give 
rise to reasonable differences of opinion. The organization of planning is still in an ex¬ 
perimental stage. A planning agency should not be “just another” commission; and it 
should not duplicate the work of existing agencies. If the state were to set up both an 
executive planning board and a legislative council, the work of these two agencies 
would necessarily overlap and might involve needless and expensive duplication. Since 
planning is likely to be academic and unrealistic unless its objective is legislation, and 
since it depends for much of its practical effect on legislative approval, it would seem 
that the planning agency should be tied-in with the legislature. There would seem to 
be no good reason why this agency should not be representative of both the legislative 
and executive branches. The set-up of the agency should be flexible; it should make 
possible the representation of different interests and points of view; it should provide for 
consultation with the best minds of the state; and it should be equipped with means for 
collecting and studying facts. 

Oklahoma should establish a State Council, consisting of three members of the Senate, 
appointed by the Lieutenant Governor, three members of the House, appointed by the Speaker 
of the House, and five members appointed by tthe Governor to serve ten-year terms, one being 
appointed every tzuo years. 

The members of the Council should be unsalaried; but their necessary expenses should 
be reimbursed. 

The Council should elect its ozvn chairman; and should be required to hold at least three 
regular meetings each year. 

The Council shoidd be authorised to appoint any number of unpaid professional and 
technical consultants and such advisory boards of laymen and specialists as it may deem ad¬ 
visable. 

Any administrative official and any member of the faculty of the University , or of the 
A. and M. College should be required to attend meetings of the Council at its call. 

The Council shoidd appoint a full-time salaried secretary, to serve without term and to 
act as head of the legislative reference and bill-drafting service; the secretary to appoint 
such assistants as may be necessary and permissible zvithin legislative appropriations. 

The functions of the Council, to be exercised by its secretary under the Council’s general 
supervision, direction and control, shoidd include : 

1. Coordination of all state-supported research activities; 


406 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


2. The conduct, or arranging for the conduct, of special or supplementary research 
projects; 

3. Continuous study of all physical, economic, social, governmental, legal, and administra¬ 
tive conditions and needs within the state; 

4. Cooperation with private and unofficial organisations and agencies for the accom¬ 
plishment of beneficial purposes which can not be appropriately accomplished legislatively; 

5. The submission of a report at least 30 days before the beginning of each regular 
session of the legislature, setting forth a legislative program, supported by facts and accom¬ 
panied, so far as possible, by drafts of bills. 

6. The furnishing of additional information and counsel to the Governor and to mem¬ 
bers and committees of the legislature. 

7. Assistance to legislators in the drafting of bills. 

8. Revision and codification of the statute law. 

For the proper discharge of its duties, the Council should have power to administer oaths, 
issue subpoenas, compel the attendance of witnesses and the production of any papers, books, 
accounts, documents, and testimony. 

The existing State Planning Board should be abolished. 

The Code Commission, if still legally existing, shoidd be eliminated. 

Finally, it should be emphasized that the mere establishment of the proposed State 
Council will not alone assure the desired results. To the Council’s membership must 
he appointed men and women of the highest capacity and standing, and the Council, 
in turn, must have for its secretary a man selected solely because of his fitness for 
the position. 


PART V 

THE REVENUE SYSTEM 



\ 




CHAPTER XXV 

THE PEOPLE AND RESOURCES 
POPULATION 

Oklahoma has an area of 70,057 square miles, most of which—it is needless to say 
consists of dry land, although it has 643 square miles of water in its rivers and lakes. 
It has a population density of 35.1 people per square mile (1933), compared with an 
average density for the United States as, a whole of 41.5 and a density of 139.6 in 
Illinois—a fact of considerable significance in the costs of schools, highways, and some 
other governmental services. 

Its rate of growth in population since the opening of the territory is indicated in 
the tabulation below, in comparison again with the increase for the entire country. 

TABLE i 

GROWTH OF POPULATION IN OKLAHOMA AND THE UNITED STATES 

1890-1933 

(Statistical Abstract of the United States, 1934) 


Year 


Oklahoma 

United 

States 

Population 

Per Cent 
of 1900 

Population 

Per Cent 
of 1900 

1890 

258,657 

32.73 

62,947,714 

82.83 

1900 

790,391 

100.00 

75,994,575 

100.00 

1910 

1,657,155 

209.66 

91,972,266 

121.02 

1920 

2,028,283 

256.62 

105,710,620 

139.10 

1930 

2,396,040 

303.15 

122,775,046 

161.56 

1933 (Est.) 

2,459,000 

311.11 

125,693,000 

165.40 


If these figures are converted into percentages, with the population in 1900 taken 
as 100 per cent, they yield the following curves: 


CHART I 

GROWTH OF POPULATION IN OKLAHOMA AND THE UNITED STATES 

1890 TO 1933 


8 


c 

o 

•H 

+> 

at 

r—t 

3 

CL 

O 

Oh 

Vl 

o 

» 

o 

u 

Oh 



1890 •" 1900 1910 1920 1930 1933 


Population 1900 - 100 % 



















410 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


The significance of population changes will be still more readily visualized if the 
population at each successive census is plotted as a percentage of the population at the 
preceding census. This is done in Chart II below, where the curves indicate the rate of 
increase from one census to another. For the United States, the rate of increase at 
successive census years, beginning with 1900, was 21, 21, 12, 16, and 8 per cent, the 
latter figure being the rate of increase indicated thus far in the decade following 1930 1 . 
For Oklahoma, the successive rates of increase, beginning in 1900, are: 206, 110, 22, 

18, and 9 per cent. 

These curves suggest two things of considerable significance. The first is that dur¬ 
ing the decade 1920-30 the population of Oklahoma was increasing very rapidly, not 
only absolutely hut in relation to the increase for the United States as a whole. It 
was largely the governmental policies of this period that precipitated the present situa¬ 
tion in state and local governments. In this decade the population of the state in¬ 
creased 18.1 per cent. 

People coming to Oklahoma do not ordinarily bring money with them—however 
much they may take away with them when they leave. There is one thing, however, 
which they all bring with them, regardless of whether they land eventually in one of the 
state’s numerous penal institutions or become governors or members of the legislature 
—that is, a demand for governmental services bn the form of highways, schools, police 
protection, and many others. In short, a rapid growth of population brings a larger 
increase in governmental responsibilities and services than in tax paying capacity to 

CHART II 

RATE OF INCREASE OF POPULATION—OKLAHOMA AND THE- UNITED STATES 

1890-1933 


(The curves indicate the population at each census as a percentage of population 

at the preceding census) 



Thompson and Whelpton, Population Trends in the United States, forecast an increase 
at the rate of 8.4 per cent for the decade 1930-40. 




















ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


411 


support them. And this was pre-eminently the situation of state and local governments 
in Oklahoma throughout the decade 1920-30. 

The second fact of significance is that the curves from 1930 on indicate not only 
a distinctly slower rate of increase but a rate that is approaching more closely that of 
the country as a whole. The estimated increase for the three year period 1930-33 is 

2.6 per cent for Oklahoma and 2.03 for the entire United States. This, taken in con¬ 
sideration with the shape of the curve in preceding periods, suggests that the state may 
anticipate a much slower growth of population in the future, which should be con¬ 
ducive to more orderly economic development and more orderly government financing. 

Urban Drift. The movement of population from country to city has had a pro¬ 
found influence on government financing throughout the United States. This is a 
factor which one might have been tempted to conjecture that Oklahoma had escaped. 
The fact is quite the reverse, as the following percentage figures of urban population 
will suggest. 

1910 1920 1930 


Oklahoma --19.3 26.6 34.3 

United States _45.8 51.4 56.2 


The percentage of urban population in Oklahoma almost doubled in the twenty 
year period 1910-30. It increased 29 per cent in the single decade 1920-30. Urban 
populations demand and require more government than rural; a period of rapid urban 
growth imposes particularly onerous burdens upon government in the form of streets, 
schools, public buildings, fire protection, traffic regulation, and so forth. 

Moreover the increased costs imposed by this drift of population to the cities are 
not offset by any appreciable reduction of costs in the rural areas from which they 
come, for the reason that highways cannot be shortened, county offices cannot be 
abolished, schools cannot be eliminated, and in general the framework of government 
can be shrunk only with the greatest difficulty. Therefore, the increased cost of urban 
government has not been compensated by any corresponding reduction in the cost of 
rural governments; and this simple fact has played a large part in the present condi¬ 
tion of both types of local government. If one might imagine that during the past fifteen 
years urban populations in large numbers had been abandoning the cities and that city 
“limits” and subdivisions had been shrinking instead of expanding, he may easily 
visualize how different the course of local government finances would have been. 

Structure of Population. Oklahoma had in 1930 only 26,753 foreign born inhabitants, 
only 48,500 of mixed parentage, and 7,354 Mexicans; or altogether only 3.4 per cent of 
its population had any element of foreign birth or parentage, compared with 21.S per 
cent for the entire United States. It had a negro population of 172,200, or 7.2 per cent 
of its total population, which is less than the average for the United States, namely 

9.7 per cent. It boasts an Indian population of 92,725 — more than that of any other 
state and more than twice that of its nearest competitor, Arizona. 

What all this means is that Oklahoma is pre-eminently an American state, in¬ 
habited by a native American population; and this has significant implications both 
for governmental costs and for problems of revenue. From the standpoint of the 
former it means a demand for higher standards of governmental services. Oklahoma, 
for example, has an illiteracy of only 2.8 per cent, compared with 4.3 per cent for the 
whole United States. But it requires liberal expenditures for common schools to reduce 
this figure from 12.1 per cent, where it stood in 1900, to 5.6 per cent in 1910, 3.8 per 
cent in 1920, and 2.8 per cent in 1930. In this respect Oklahoma occupies a somewhat 
unique position. It is true that on its northern boundary Kansas has an illiteracy of 
only 1.2 per cent; but otherwise Oklahoma is bounded on the east by an illiteracy of 

6.8 per cent, on the south by 6.8 per cent, and on the west by illiteracies of 6.8 and 13.3 
per cent. And common school education is only one of the forms of governmental 
service which native Americans demand in larger quantity and higher quality than 
sometimes suffice for other people. 

From the standpoint of revenue, it suggests larger financial capacity and the 
possibility of more intelligent and equitable types of taxation than those that have 







412 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


prevailed, more or less of necessity, among the peasant populations of Europe. Specifical¬ 
ly it suggests the larger development of income and inheritance taxes and other taxes 
which imply the existence of measurable financial capacity. Mississippi, with a negro 
.population of 50.2 per cent and an illiteracy of 13.1 per cent, Louisiana with a negro 
population of 37 per cent and an illiteracy of 13.5 per cent, and South Carolina with 
a negro population of 45.6 per cent and an illiteracy of 14 per cent are more or less 
sales tax states per se. Oklahoma, at least in its population structure, is an income 
tax type of state; and this is one reason for suggesting the type of inpome taxation that 
will be discussed in a subsequent chapter. 

Age Distribution. One further aspect of population structure is significant from the 
standpoint of government finance. The age distribution of Oklahoma’s population, com¬ 
pared with that for the whole United States, is indicated below. 

TABLE II 


AGE DISTRIBUTION OF POPULATION, 1930 1 
(As Percentages of Total Population) 

Age Groups 

Oklahoma 


United States 

Under 

5 

years 

11.0 


9.3 

5 to 

9 years 

11.9 


10.2 

10 to 

14 

years 

10.8 

* 

9.8 

15 to 

19 

years 

10.5 


9.4 

20 to 

24 

years 

9.6 


8.9 

25 to 

29 

years 

S.2 


S.O 

30 to 

34 

years 

7.1 


7.4 

35 to 

39 

years 

6.7 


7.5 

40 to 

44 

years 

5.6 


6.5 

45 to 

49 

years 

4.8 


5.7 

50 to 

54 

years 

4.1 


4.9 

55 to 

59 

years 

3.2 


3.8 

60 to 

64 

years 

2.4 


3.1 

65 to 

69 

years 

1.7 


2.3 

70 to 

74 

years 

1.2 


1.6 

75 and over 

1.2 


1.6 



Total 

100.0 ■ 


100.0 


It will be noted that Oklahoma exceeds the rest of the United States in the propor¬ 
tion of population found in all groups up to the age of 30. Two-tliirds of Oklahoma’s 
population is youthful, in William C. Whitney’s celebrated definition of youth: “Thirty- 
two—and $20 to take a chance on”; and the latter part of the definition applies as aptly 
as the first. 

If these figures are thrown into the form of the graph below, their significance is 
easily visualized. 


^Fifteenth Census of the United States (1930). 






413 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


CHART III 

AGE DISTRIBUTION OF POPULATION—OKLAHOMA AND 
THE UNITED STATES, 1930 



* 


Under 5 
5 9 


10 15 20 25 
14 19 24 29 


30 35 40 45 50 55 

34 39 44 4 9 54 59 


60 65 70 75 

64 69 74 k Over 


Age Groups 
Legend 


Oklahoma - 

United States -- 

Oklahoma has an excess proportion of people throughout the periods when they 
impose heavy costs upon government, particularly in the field of education—grade 
schools, high schools, and colleges; it has a “deficit” of people in the periods of greatest 
taxpaying ability. If we take the three age groups from 5 to 20 years as representing 
substantially the period of education, and ages 30 to 60 as representing the period of 
production and earning power, we find that in Oklahoma 31.4 people aie paying taxes 
to educate 33.2 people; in the rest of the country 35.8 people are paying taxes to educate 
29.5 people—and this has considerable to do with school taxes. 

WEALTH AND INCOME 

There are apparently no worthwhile data on the total wealth of Oklahoma; but if 
we start with the assessed valuation of property, we may make certain rough estimates. 
In the absence of specific studies of the relation of assessed a aluations to actual \ alue, 
the consensus of opinion is that real estate is probably assessed at around 45 per cent 
of actual value, public service property probably not far from that geneial level, and 







































414 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


personal property at anywhere from 10 to 30 per cent. If we apply a 45 per cent rate 
to real estate and public service property, and 20 per cent to personal property, we ar¬ 
rive at the aggregate indicated in Table III below. 

TABLE III 

ESTIMATED VALUE OF PROPERTY 

Assessed Valuation Estimated 

1934 Actual Value 


Real Estate: 

Farm Real Estate 

Land _ 

Improvements _ 

Total _ 

Urban Real Estate 

Land _ 

Improvements _ 

Total _ 

Total Real Estate _ 

Personal Property _ 

Public Service Corporations 

Total _ 


$ 358,885,474 
47,739,522 


406,624,996 

146,247,600 

210,706,845 

356,954,545 

763,579,541 

189,183,529 

305,923,403 

$1,258,686,473 


? 797,523,275 
106,087,826 


903,611,101 

324,994,666 

468,237,433 

793,232,099 

1,696,843,200 

945,917,645 

679,829,784 

$3,322,590,629 


To this total we may add an estimate of the value of the banks and trust companies, 
of the state. Only their real estate is assessed for property taxation and is included in, 
the totals reported above. The Comptroller of the Currency reports their capital, sur¬ 
plus, and undivided profits, as of June 30, 1933, at $42,4S2,000. 1 About the only other 
available item appears to be savings and other time deposits, which are reported for 
1933 as totalling $99,482,698. 2 If we add these items to our total above, we reach the 
following result: 


Value of Property Assessed for Taxation _$3,322,590,629 

Banks and Trust Companies_ l_ 42,482,000 

Savings and Other Time Deposits_:_ 99,482,698 


Total----$3,464,555,327 


To this we should still have to add the value of operating oil properties, which are 
taxed under the gross production tax and for which there is therefore no assessed or 
other form of valuation. This would bring our total to something over $3,500,000,000. 

There are, of course, considerable amounts of other categories of property that are not 
assessed or are subjected only to a nominal assessment; but our total here may serve 
as a preliminary inventory, upon which it is to be hoped the newly established Research 
Division of the Tax Commission will find means of improving from year to year. 

Meanwhile it may be noted that this figure will serve to represent substantially 
tangible property and therefore is free from duplications. It is true, there are some 
intangibles in the item for “Personal Property,” but they represent a trifiling propor¬ 
tion and are much more than compensated by the amount of tangible personal property 
that escapes assessment. There might be some element of franchise value in the assess¬ 
ment of public service corporations, but the evidence indicates that there is little, if 
any. Similarly, savings accounts may be construed to be intangible; but if so, the 
amount of actual cash in circulation in the United States, if apportioned on a popula¬ 
tion basis, would imply an amount in excess of the item of savings deposits above. 

Therefore we may construe our aggregate figure to represent only the tangible 
wealth of Oklahoma, without duplication, and presumably less than the actual total on 
account of numerous unavoidable omissions. This means a total physical wealth in 
the neighborhood of $3,500,000,000, which would suggest a wealth of some $1,400 per 
capita. 

Volume of Production and Business. Here it is still more difficult to secure accurate 
information, but the data in Table IV below may serve as a suggestive inventory of the 
volume of production and business, which can be improved in accuracy and compre- 


3 Report of Comptroller of the Currency, 1933. 

2 United States Statistical Abstract, 1934. 



























ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


415 


hensiveness from year to year. Here we have taken such information as is available 
for the most recent periods available. 

TABLE IV 

VOLUME OF PRODUCTION AND BUSINESS IN OKLAHOMA 


Value of Year to 

Product or Which 

Fields of Industry and Business Amount of Figures 

Business Done Apply 


Agriculture 1 _._$ 

Mineral Products 3 _,_ __ 

Lumber 2 (Estimated) -- 

Manufactures 8 

Petroleum Refining _$74,255,041 

Flour and Grain—Mill Products_21,251,015 

Meat Packing _.._ 17,713,141 

Butter - 8.258,275 

Printing and Publishing _ 7,949,826 

Cottonseed Oil, Cake, and Meal _ 7,797,222 

Bread and Other Bakery Products _ 6,530,487 

Glass - 4,850,460 

Zinc Smelting and Refining _ 4,730,696 

All Other - 38,077,560 


193,000,000 

185,121,000 

982,800 


Total Manufactures _$ 191,413,723 

Wholesale Sales 2 -- 304,469^000 

Retail Sales 4 _ 454,661,546 

Water Consumption 5 6 _ 7M54'oOO 

Hotel Rooms 5 -~__ 4^847,000 

Municioally owned gas 5 and Electric Consumption_ L223’438 

Real Estate and Securities Sale 5 _ 10,000,000 

Rents and Royalties 5 _ 20,000,000 

Transportation 

Gross Revenues of Railway Companies 

Allocated to Oklahoma 0 _ 45,358,396 

Construction 7 _~_“_ 5’629'800 

Banking and Financial Institutes 

Gross Earnings, National Banks 5 _ 7,080,000 

Gross Earnings, State Banks 8 _ 2.605,464 


Total 


$1,433,846,167 


1933 

1932 

1932 


1933 

1933 

1934 

1931 

1932 

1931 

1932 
1932 


1933 

1934 

1932-33 

1934 


In this tabulation, the figure for retail sales is that reported for the sales tax and 
presumably represents an understatement. The figure for gross revenues of the rail¬ 
roads is the allocation made by the railroads and apparently understates somewhat 
the railroad business of Oklahoma. In view of the presumption of understatement in 
these and some other items and in view of the number of miscellaneous lines of business 
not covered in this exhibit, it is apparent that the total volume of business must be 
well in excess of $1,500,000,000. 

Furthermore, the Census for 1930 reports 126,557 persons engaged in professional 
fields and domestic and personal service^ An assignment of any reasonable return to 
these groups would add another $100,000,000 or so to our total, making an aggregate of 
something over $1,600,000,000. 

Oklahoma is commonly thought of as an agricultural and an oil state; it will be 
noted that in value of product it is as much a manufacturing as an agricultural or oil 
state, the three great fields of industry—agriculture, oil and minerals, and manufactur¬ 
ing—contributing approximately equal aggregates. It may be observed that the tax 
system should in some degree reflect this distribution of resources. 

In this connection, the occupational distribution of its population, in Table Y below, 
affords another cross section of the same industrial structure. 


'Yearbook of Agriculture, 1934, United States Department of Agriculture 

2 Statistical Abstract of United States, 1934, United States Department of Commerce 

3 Census of Manufactures. 1933. United States Department of Commerce 

^Oklahoma Tax Commission, Oklahoma City, Oklahoma 

5 Compilations of Oklahoma, 1933, State Chamber of Commerce, Oklahoma City 

6 State Corporation Commission. Oklahoma City, Oklahoma 

’Estimated 

8 Report of Comptroller of the Currency, 1933 

°State Banking Department, Oklahoma City, Oklahoma 


































416 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


OCCUPATIONAL DISTRIBUTION OF 

OVER, 

(United 

TABLE Y 

1 GAINFUL WORKERS, 10 YEARS 
1930, OKLAHOMA 

States Census—1930) 

OF AGE AND 

Occupation 


Number Engaged 

Agriculture _ __ _ _ _ _ 

Forestry and Fishing _ 

Extraction of Minerals 


- 306,091 

2,211 

. _ __ 41,286 

Manufacturing and Mechanical Industries 
Transportation and Communication 


139.923 

56,087 

Trade 

Public Service 


100.244 

12,519 

Professional Service 

Domestic and Personal Service 


_ _ 53,087 

73,470 

Clerical Occunations 

Total 


43,086 

__ 828,004 


In terms of population Oklahoma is more pre-eminently agricultural than in terms 
of value of production; but manufacturing is second, employing approximately half 
as many people as are engaged in agriculture. The oil industry is distinctly less a 
factor in terms of employment than in value of product. 

Income. There are no accurate data for net income available, particularly none 
for recent years. But the National Bureau of Economic Research estimated the ag¬ 
gregate net income of the people of Oklahoma in 1929 at $1,195,000,000. This was 1.31 
per cent of the estimated total income of the people of the United States. 1 The Division 
of Economic Research of the Department of Commerce 2 estimates the national income 
for 1933— the latest year for which such estimates are available—at $46,800,000,000. 
If we may assume that Oklahoma has shared somewhat equally in the vicissitudes of re¬ 
cent years, 1.3 per cent of this reduced national income would suggest a net income of 
some $608,000,000, which appears to correspond to an estimate of “spendable money 
income” for Oklahoma made by the Sales Management magazine, in April 1934, namely 
$635,475,000. 3 ■ | 

Summary. Economic capacity, and particularly tax-paying capacity, are commonly 
measured in terms of (a) wealth, (b) production and business, and (c) income. We 
have found that the people of Oklahoma are possessed of some $3,500,000,000 of wealth; 
that they carry on a volume of production and business in excess of $1,600,000,000; and 
that even in the midst of depression they enjoy a total income of some $600,000,000. 

Total taxes, state and local, levied in Oklahoma in 1933 may be estimated at $78,- 
130,000. It is apparent that this is an amount well within the means of the people 
of Oklahoma to afford—provided they are thereby enabled to secure a reasonably honest 
and competent government. It is a lot of money to pay for any other kind. But at best 
$78,000,000 is a substantial burden upon the income and industry of the state. How much) 
hardship it imposes and how much of an obstacle it becomes to industrial recovery will 
depend largely upon the way in which this burden is spread over the property, business, 
and income of the state. 

The tax system is the mechanism that determines how this burden is spread; and 
this will be the object of our inquiry throughout the remainder of this study. 


i 


3 Maurice Leven, Income in the Various States. 

2 Survey of Current Business , January 1935. 

s Sales Management. April 1934 p. 358. 




















CHAPTER XXVI 

THE OKLAHOMA CONSTITUTION 

Whatever criticism may be made upon the Oklahoma Constitution otherwise, it 
must be said that in the field of taxation the people of Oklahoma enjoy an unusual de¬ 
gree of “constitutional freedom”—which is more than can be said of many of the 
older states situated in the great “uniformity” basin! of the Middle West and still bound 
by the rigid constitutional restrictions of a past century. 

GENERAL POWERS 

The Constitution confers general powers of taxation upon the legislature, subject 
to the broad provision that taxes must be levied by general laws and must be for 
“public purposes” only. 1 The legislature may confer similarly broad taxing authority 
upon local governments. 2 

EXEMPTIONS 

The Constitution provides for the usual exemptions of public property, and property 
used exclusively for religious, charitable, and educational purposes. It provides the 
somewhat unusual exemption of one hundred dollars’ worth of household goods, tools, 
and livestock to “heads of families,” and two hundred dollars’ worth of personal prop¬ 
erty to both Union and Confederate soldiers and their widows. Property of Indians 
affected by treaty stipulations or federal laws is exempt. And the legislature may au¬ 
thorize municipalities, upon majority vote of the citizens thereof, to exempt manufactur¬ 
ing establishments and public utilities from municipal taxation for a period of not 
more than five years “as an inducement to their location.” 3 

UNIFORMITY 

Taxes must be uniform “upon the same class of subjects” ; 4 but nothing in the Con¬ 
stitution is to be construed to prevent “the classification of property for purposes of 
taxation.” 5 * 

KINDS OF TAXES 

In order to leave no doubt about the broad powers of taxation conferred, the Con¬ 
stitution enumerates, as types of taxation which the legislature may impose: license, 
franchise, excise, gross revenue, income, inheritance and succession taxes, poll, stamp, 
registration, production, and “other specific taxes,” specifically supplementing this list 
with “graduated” income taxes, “graduated” inheritance taxes, and “graduated” legacy 
and succession taxes. It would require a tax “expert” to devise a more cyclopedic 
enumeration of possible sources of income. The poll tax is limited to polls “under 
sixty years of age” ; s so that if the proposed old age pension amendment is adopted, 
Oklahoma will be in a position to tax its polls up to the age of 60 and to pension them 
thereafter—which reminds one of Mark Twain’s definition of old age. 

One clause of the Constitution 7 specifically permits separate sources of revenue for 
the state, on the one hand, and local governments, on the other—a reminder of the 
movement for “separation of sources,” which had great vogue in this country at the 
time of the adoption of the Oklahoma Constitution in 1907. 

SPECIAL ASSESSMENTS 

Special assessments by county and municipal governments are authorized for local 
improvements, “without regard to a cash valuation.” 8 


lArt. X, Secs. 2, 3, 14. 

2 Art. X, Sec. 20. 

3 Art. X, Sec. 6. 

4 Art. X, Sec. 5. 

5 Art. X. Sec. 22. 

8 Aj-t. X, Secs. 12, 18. 

7 Art. X, Sec. 13. 

8 Art. X, Sec. 7. 


f < 



418 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


DEBT 

The state is authorized to incur debt, “to meet casual deficits or failure in revenues,” 
not to exceed $400,000. It can contract debt to repel invasion or suppress insurrection. 
But otherwise no indebtedness can be incurred by the state without submitting specific 
legislative proposals for such indebtedness to popular vote at a general election and 
receiving a majority of all votes cast for or against the proposal. And any legislation 
authorizing such indebtedness must provide for a “direct annual tax” sufficient to pay 
the interest and to retire the principal within 25 years. 1 The constitutional amendment 
of 1933, prohibiting any property tax levy by the state government, leaves some doubt 
as to what would now constitute a “direct annual tax.” 

Local governments may incur temporary indebtedness, not to exceed in any year 
their contemplated revenue for that year. Additional indebtedness may be incurred 
ouly on favorable vote of three-fifths of the voters, voting at an election to be held for 
that purpose. Total indebtedness is limited to 5 per cent of the assessed valuation of 
property. Any indebtedness must be accompanied by legislation providing for “an an¬ 
nual tax” sufficient to pay the interest and retire the principal within 25 years. 2 3 

Municipalities may, however, exceed the debt limit specified above by majority vote 
of the “qualified property tax paying voters,” for the purpose of purchasing or con¬ 
structing municipal public utilities. This, like other indebtedness, is subject to the 
provision for levying an annual tax sufficient to retire the debt in 25 years.* 

STATE BOARD OF EQUALIZATION 

At one point in drafting the revenue article, the Constitutional Convention of 
1907 fell down badly. When they reached Section 21, they set up a permanent Board 
of Equalization for the assessment of railroad and public service corporations and for 
the equalization of property assessments throughout the state. The Board was to con¬ 
sist of the Governor, State Auditor, Treasurer, Secretary of State, Attorney General, 
State Inspector and Examiner, antj President of the Board of Agriculture. They could 
hardly have selected a worse aggregation for the performance of the highly specialized 
functions assigned to it. The results have been somewhat mitigated by the creation 
of a State Tax Commission in 1931, which is authorized to perform the work of the 
Board of Equalization and to “report its findings” to this Board for approval. This 
arrangement will be discussed more fully in another connection 

TAX LIMITATION 

The Constitution originally incorporated a tax limitation provision, hut one so liberal 
that it appears to have had no material results. It imposed the following limits: 

State _ 3% mills 

County - 8 mills 

Township _ 5 mills 

City or Town _10 mills 

School District _ 5 mills 


Total _31% mills 

In addition to the above, counties were permitted to levy an additional 2 mills for 
schools; and school districts, by majority vote of their citizens, might levy an additional 
10 mills, making a total possible levy of 43% mills. 4 

More drastic tax limitation provisions were incorporated in a constitutional amend¬ 
ment adopted August 15, 1933. This prohibits any property tax levy by the state gov¬ 
ernment. It limits total levies by local governments to 15 mills, “to he apportioned be¬ 
tween county, city, town and school district, by the county excise board, until such 
times as the regular apportionment is otherwise provided for by the legislature.” 

In addition to this 15 mills, however, counties may levy an additional two mills 


’Art. X, Secs. 23, 24, 25. 

2 Art. X, Sec. 26. 

3 Art. X, Sec. 27. 

4 Art. X, Sec. 9. 










ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


419 


for separate schools for white and negro children; and school districts may levy an 
additional 10 mills, on majority vote of the voters of any district. 

This makes possible a total property tax levy of 27 mills. But under a policy of 
drastic reductions in assessed valuation carried out in the past few years, this tax 
limitation has constituted an effective restraint upon the expenditures of local govern¬ 
ments. It may be of interest to note that the constitutional amendment imposing this 
limitation and abolishing entirely the state property tax levy was adopted by a vote of 
183,623 to 20,739. 1 

Such in brief, is the constitutional framework within which Oklahoma's tax system 
must be constructed; and on the whole, it is a very liberal framework. 


Laws, 1933, Chap. 169, amending Art. 10. Sec. 9 of the Const. 



CHAPTER XXVII 

DEVELOPMENT OF THE OKLAHOMA TAX SYSTEM 

It would seem that a new state, setting out in 1907 with a liberal Constitution and 
background, might have had an unusual opportunity to blaze some new trails in the 
development of more intelligent and equitable types of tax policy and tax administration. 
It was an opportunity for a “new deal” in taxation. (But university professors and 
tax “experts” were few “upon the land” in those days, not to mention research insti¬ 
tutions ; and the practical politicians and business leaders of the time proceeded im¬ 
mediately to incorporate all the traditional errors of the Eastern states, from which 
most of them had come. 

Their first step was the adoption of the general property tax as almost the sole 
source of revenue for both state and local governments; and in doing this they were 
careful to omit none of the errors commonly associated with property tax administra¬ 
tion. They provided for the maximum number of assessors, one for each township, 
and for his election by the property owners he was to assess. They provided for 
three sets of equalizers: township, county, and state—and all of them ex-officio. It 
was, in short, the same system as that set up in Ohio one hundred years before, ex¬ 
cept for the ex-officio State Board of Equalization. 1 

The “Square Deal” period in American politics was reflected in Oklahoma tax 
history in efforts to reach the corporations with more effective forms of taxation. The 
assessment of property of pipe line, water, gas, and electric light and power companies 
was transferred to the new State Board of Equalization. A gross revenue tax, in ad¬ 
dition to property taxes, was imposed on mining and public service companies. 1 Pro¬ 
vision was made for assessment of corporations, including banks, according to their 
“monied capital.” 2 A general license tax was imposed on corporations, other than rail¬ 
road, public utility, and financial corporations, at the rate of $1.50 per $1,000 of au¬ 
thorized capital stock. 3 

Other miscellaneous provisions for the taxation of corporations were adopted 
throughout this period. But all put together, the corporations were not greatly affected 
by them, and the bulk of government revenues continued to come from real estate and 
farm property. 

The general “progressive” movement, associated first with the La Follette leader¬ 
ship in Wisconsin and later with the overturn of the national administration at Wash¬ 
ington in 1912, left a distinct impress on taxation in Oklahoma. Herein Oklahoma con¬ 
sciously followed the leadership of Wisconsin. 

Township assessors and boards of equalization were abolished in 1911, and the 
county was made the unit for purposes of assessment, with an elective county assessor. 4 
A mortgage registration tax was adopted in 1913, in lieu of property taxes on domestic 
real estate mortgages. 5 * An income tax was adopted in 1915,® and an inheritance tax in 
the same year. 7 

All of this progressive legislation was largely nullified either by defective struc¬ 
ture of the statutes or by ineffective administration—sometimes by both. 

The motor age registered in Oklahoma in the adoption of a gasoline tax of 1 cent 
in 1923—six years after President Wilson’s modest proposal of a one cent federal tax 
and after the Horseless Age had replied: “What gasoline is to automobiles, oats are 
to horses; so let’s tax oats.” The subsequent course of events has managed to dis¬ 
tinguish in many ways between gasoline and oats. 

The movement, for “classification of property,” which attained considerable vogue 
in the period following the war, is reflected in a statute of 1925, exempting money and 


’Laws, 1907-08, Chap. 71 

Taws, 1909. Chap 38. 

’Laws. 1910, Chap. 57. 

Taws, 1910-11. Chap. 152. 

'Laws, 1913. Chap. 246. 

'Laws, 1915, Chap. 164. 

7 Laws, 1915, Chap. 162. 



ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


421 


credits from tlie general property tax and applying a low mill-tax instead. 1 In order to 
avoid conflict with the federal statutes, the act did not apply to monied capital con¬ 
strued to be in competition with the national banks. In an effort to reach the banks 
it was provided that corporations other than those assessed by the State Board of 
Equalization were to be assessed on their “monied capital.”" The history of bank taxa¬ 
tion since that time has been a chequered one, in Oklahoma as elsewhere, and will be> 
discussed more fully in another connection. 

An important step was taken in 1931, which appears to be entirely out of connec¬ 
tion with its natural historical setting. This was the creation of the present State Tax 
Commission. Historically, this should have fallen in the period from 1911 to the World 
War and would have been in consonance with the progressive legislation adopted at that 
time. It was retarded by political and other opposition and its belated enactment in 
1931 appears to have been due to the accident of a vigorous administration in the state 
government at that time. 

Its functions Were limited by the existence of the State Board of Equalization, 
created by the Constitution. But it was provided that most of the functions of the 
latter board should actually be performed by the Tax Commission, through the proce¬ 
dure of having the Tax Commission “report its findings” to the Board of Equalization 
for authoritative approval.* 

A further step toward improved administration was taken in the same year through 
the creation of an appointive county board of equalization, composed of three mem¬ 
bers, one to be appointed by the State Tax Commission, one by the district judge or 
judges, and one by the board of county commissioners. 4 

The last factor to register its effects on the tax system was the depression itself. 
It was reflected in Oklahoma, as elsewhere, in acute distress on the part of taxpayers, 
an enormous tax delinquency, and widespread conditions of insolvency on the part of 
local governments. It gave impetus to the movement among farmers and real estate 
owners for more drastic tax limitation provisions and resulted in the adoption, in 1933, 
of the constitutional amendment abolishing the state property tax levy and imposing 
the so-called 15-mill limitation on the levies of local governments. 

Meanwhile both state and local governments found their revenues shrinking faster 
than their expenditures, partly on account of extravagant indebtedness assumed by 
local governments during the period of prosperity, and the state turned to the sales tax 
“for relief.” Oklahoma succumbed—along with nine other states—in 1933, adopting 
a 1 per cent retail sales tax, intended to serve purely as an emergency measure, and 
endowed with the virtue of automatic expiration on July 1, 1935. 

With the adoption of the sales tax Oklahoma could boast quite a miscellaneous 
assortment of taxes, embracing as its major elements and in rough historical order: 
property, corporation, gross production, income, inheritance, motor vehicle, gasoline, 
and sales taxes. In a sense this series of tax legislation constitutes a record of the 
movements that characterized American political history throughout the past quarter 
century—the “Square Deal,” the “progressive” movement, the motor age, the conflict 
between federal and state jurisdiction, and the depression. 

The impress left by these different periods is pretty much the same in Oklahoma 
as in the rest of the states—much as the geologists find remnants of the same forms 
of life in a given rock stratum, regardless of whether they happen to turn up the 
stratum in an outcrop in West Virginia or 1 in the Grand Canyon of the Colorado. When 
future geologists in the field of taxation dig down into the depression of the 1930’s, they 
will find the word “emergency” written all over this economic stratum, from Maine to 
California—by way of Oklahoma. 

On the whole, it is a rather drab and stereotyped record, shaped mostly by the 
conflict among political and business groups for preferred positions with reference to 
the expenditure of public funds and the distribution of public burdens. One who 


’Laws, 1925, Chap. 120. 

’Laws, 1925, Chap. 135. 
Taws, 1931. Chap. 66, Art. I. 
’Laws, 1931, Chap. 66, Art. II. 



422 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


goes back over the tax literature of this period will find many illuminating studies of 
Oklahoma’s tax problems and many able reports of commissions and committees, such 
as that of the Tax Code Revision Commission of 1924. But in one way or another 
governors and legislatures managed to escape them all, as it is conceivable that they 
may manage to hurdle this one. 

In any case, if Oklahoma should aspire to a position of distinction in the develop¬ 
ment of more intelligent and equitable forms of taxation and more efficient administra¬ 
tion, it is apparent at the end of her first quarter of a century of statehood that the 
opportunity still existed. 



CHAPTER XXVIII 


A CROSS SECTION OF THE REVENUE SYSTEM 

Before going into a somewhat detailed analysis of the elements of the tax system, 
it will be helpful to get a comprehensive picture of the entire system in operation, in 
the form of a statistical exhibit of its actual results for one year. Such an exhibit is 
presented in Tables I and II below, for the most recent year available for all units of 
government, namely, the fiscal year ending June 30, 1033. 

Table I includes all revenues collected by the state government, from whatever 
source, and indicates the allocation of these revenues between the state and local gov¬ 
ernments. Table II includes taxes and revenues of all county and local governments 
in the state. 

Such information as that contained in these tables ought to be available in the 
form of annual or periodic reports put out regularly by the Tax Commission or other 
appropriate state department, as a matter of providing the most rudimentary informa¬ 
tion with regard to the operations of government. It may be of some interest to the 
taxpayers of this) state, therefore, to know that it has required months of arduous labor 
by a staff of workers to assemble this elementary information in a form that will be half¬ 
way intelligible and as nearly accurate as it is possible to make it. 


TABLE i 

REVENUES COLLECTED BY THE STATE GOVERNMENT OF OKLAHOMA 
FISCAL YEAR ENDING JUNE 30. 1933 


Allocated Allocated to 

Total to State Local Governments 


I. 


II. 


Taxes 

Ad Valorem 1 _ 

Income _ 

Inheritance _„_ 

Corporation license _ 

Gross receipts _ 

Sales tax _ 

Gasoline _ 

Motor vehicle license _ 

Motor carrier _ 

Gross production _ 

Petroleum excise _ 

Taxation of insurance companies _ 

Feed tax _ 

Fertilizer tax _ 

Oleomargarine _1_ 

Total Taxes _ 

Other Revenues 

Licenses and permits _ 

Fees _ 

Special assessments _,_ 

Fines, forfeits, escheats _,_ 

Subventions and grants—Federal _ 

Subventions and grants—local _ 

Donations and gifts—private persons and 

Interest on deposits _ 

Rentals _ 

Sales of services: departments__ 

Sales of services and supplies: 

Educational institutions _ 

Sales of services: Board o£ 

Affairs’ Institutions__ 

Miscellaneous _1_ 

Total other revenues _ 

Total revenues 


. $ 4,703,382.89 

$ 4,020,200.66 

$ 683,182.23 

1.900,601.01 

1,248,802.11 

651,798.90 

627,762.42 

627,762.42 


758,758.22 

758,758.22 


45,180.19 

45,180.19 


1.092.10 

1,092.10 


. 10,240,089.51 

7,335,531.44 

2;904,558.07 

3,295,818.62 

1,983,689.68 

1,312,128.94 

211,097.19 

211,097.19 


3,820,061.58 

2,632,533.36 

1.187,528.22 

14,054.72 

14,054.72 


796,202.23 

607,310.30 

188,891.93 

38,460.25 

38,460.25 


691.25 

691.25 


3.20 

3.20 


$26,453,255.38 

$19,525,167.09 

$6,928,088.29 

$ 348,707.55 

$ 348,707.55 


577,343.47 

577,343.47 


33,598.51 

33,598.51 


44,624.37 

44,624.37 


- 3,925,332.84 

3,925,332.84 


339,838.40 

339,838.40 


33,831.03 

33,831.03 


246,259.89 

246,259.89 


748,327.24 

748,327.24 


2,806.00 

2,806.00 


- 1.114,531.43 

1,114,531.43 


402,573.09 

402,573.09 


20,829.04 

20 , ,829.04 


. 7,838,602.86 

7,838,603.86 


.$34,291,858.24 

$27,363,769.95 

$6,928,008.29 


'Total ad valorem tax levied was $4,933,822. 

















































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ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 425 


The following table will show the total tax burden of all governments in Oklahoma 
for 1933. 

Ad Valorem Taxes Levied : 


State Government _$ 4,933,822 

Local Governments _ 51,248,203 

Other Taxes Collected: 

State Government _ $21,749,872 

Local Governments _ 208,311 


Total Tax Burden _$78,140,208 


This amount differs from taxes collected because of a heavy delinquency in property 
taxes of $27,323,938. 

This represents a tax burden of $31.77 per capita. If our estimates of wealth, busi¬ 
ness, and income in Chapter XXV may serve as a rough basis for visualizing the sig¬ 
nificance of governmental cost, we may estimate that this tax burden imposes a cost 
of something like $22.00 per $1,000 of wealth in the state, a cost equivalent to some¬ 
thing less than 5 per cent of gross business done by the people of the state, and to 
slightly less than 13 per cent of their net income. In brief, it suggests that the people 
of Oklahoma, in financing their costs of government, may choose a property tax of 2.2 
per cent on full value, a 5 per cent gross income tax, or a 13 per cent net income tax, 
or various combinations of all of them; and these, it must be remembered, are de¬ 
pression values, depression volumes of business, and depression incomes. 

In the exhibit of state revenues, it may be noted that 1933 was the last year in 
which the state made any property tax levy, and that the sales tax had not yet be¬ 
come effective. 

A striking feature is the large allocation of state taxes to the local governments, 
nearly seven million out of the total of 26% million collected, or 26 per cent of the 
total. This is in addition to specific appropriations by the state for the benefit of local 
governments and to expenditures by the state for services of primary concern to local 
communities. 

Another striking feature is the heavy proportion of motor transport taxation in the 
local taxes of the state—gasoline, motor vehicle license, and motor carrier taxes to¬ 
gether representing $13,747,005 out of a total of $26,453,255, or exactly 52 per cent. 
Whether this is disproportionate or not depends, of course, on the magnitude of the 
highway and traffic problem on the expenditure side of the reckoning. The property 
tax ranks second in importance and the gross production taxes third. 

In the exhibit of local revenue there are two striking features: One is the heavy 
proportion of the property £ax, and the other is its heavy delinquency, the one to some 
extent explaining the other. The amount of property taxes, however, cannot be com¬ 
pared directly with the totals of taxes levied or collected by local governments, on ac¬ 
count of the substantial amount of taxes collected by the state and allocated directly 
to local governments. -If we take the latter item, $6,928,088, add the ad valorem levy 
by local governments, $51,248,203, and the “other taxes” assessed by local governments, 
$220,828, we find a total of $58,297,119 of taxes assessed by or for account of local 
governments. Of this total, property taxes levied (including the $683,182 of ad valorem 
taxes collected by the state but allocated to local governments) represented 89 per cent. 

The taxes and revenues of local governments are not available for the fiscal year 
1934: but the revenues collected by the state government are presented in Table III, 
for purposes of comparison with the corresponding data for 1933, in Table I above. 








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428 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


It will be noted that the amount of taxes allocated to local governments lias not 
only increased (from $6,928,000 to $10,385,000), but that it represents a substantially 
larger proportion of the total, namely, 34.8 per cent compared with 26.2 per cent in 
1933. Motor transport taxes still represent the largest single field of taxation, though 
a slightly smaller proportion of the total than in 1923, namely 47% per cent compared 
with 52 per cent in 1933. The gross production taxes still rank second in importance; 
but the sales tax has replaced the property tax as the third in rank. 

One of the most striking aspects of the whole exhibit is the small proportion of taxes 
going to the General Fund. Out of a total of $29,865,004 of taxes collected by the state, 
only $6,815,177 or 22.8 per cent goes into the general fund of the state government. 

A TEN-YEAR PERSPECTIVE 

These figures for current revenue, it is hoped, will afford a fairly comprehensive pic¬ 
ture of the revenue system in operation; a picture, however, which will be greatly im¬ 
proved by the element of perspective afforded by Chart I below. This chart has been 
worked out by the new Research Division of the Tax Commission. 

Here the one most striking feature is the extent to which the whole picture has 
been dominated in the past by three major forms of revenue, namely: Motor and gaso¬ 
line, gross production, and property taxes, the latter in process of being replaced by the 
sales taxes. The income and inheritance taxes serve only to embroider the gasoline 
and gross production taxes. 

The depression, began to register in 1931: and so far as taxes may constitute a 
business barometer, it passed its bottom in 1933. The motor and gasoline taxes have 
demonstrated their remarkable stability in Oklahoma, as elsewhere. The chart illus¬ 
trates clearly the fact, referred to in Chapter XXVII that the state’s revenue difficul¬ 
ties have been due chiefly to the sharp decline in the gross production taxes. The 
sharp increase in income tax collections beginning in 1931 is a barometer neither of 
prosperity nor depression; it is a barometer of tax administration, reflecting the work 
of the new Tax Commission created in 1931. 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


429 


CHART I 

REVENUES COLLECTED FROM MAJOR SOURCES STATE OF OKLAHOMA 
Fiscal years 1925-1934, and Estimate for 1935* 


Millions 
36 


34 

32 

30 

28 

26 

24 

22 

20 

18 

16 

14 

12 

10 

8 

6 

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2 

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(estirrxite) 


* Source: Report of State Auditor, 1934, p. 43. Motor Carrier tax collections from Treas¬ 
urer’s records and Report of Oklahoma Tax Commission; Motor Carrier data before 1930 not 
available. Estimate for 1935 prepared by the Accounting- Division, Oklahoma Tax Commis¬ 
sion. , ,. .. „ . . 

OKLAHOMA TAX COMMISSION, Research and Statistics Division 


Chart II affords a perspective upon the problem of apportionment of revenues be¬ 
tween state and local governments. It exhibits two striking trends: One is the ex¬ 
pansion of the portion allocated to local governments, the othei the striking shrinkage 
in the proportion of tax collections going into the General Fund of the state. Ten years 
a°-o the General Fund received, in round numbers, $10,000,000 out of a total of $23,- 
000,000 collected; for the current year it is estimated that it will receive something less 
than $7,000,000 from a total of $31,000,000. 












































































430 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


CHART H 


APPORTIONMENT OF REVENUES FROM MAJOR SOURCES 
STATE OF OKLAHOMA 


Fiscal years 1925-1934, and Estimate for 1935* 

Millions 


Other 
State 
F unds 


State 
Highway 
Ccmm is s ic- 


State 

General 

Revenue 

F und 


Local 

Govern¬ 

ment 


"1926 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 

(estimate) 

* Source: Report of State Auditor, 1934, p. 43. Estimate for 1935 prepared by Account¬ 
ing Division, Oklahoma Tax Commission. 

OKLAHOMA TAX COMMISSION, Research and Statistics Division 


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22 

20 

18 

16 

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INDEBTEDNESS 

The previous exhibits have all had to do with taxes. But one reflection of a rev¬ 
enue system is the extent to which it engenders debt. The net state debt, under rigid 
constitutional restrictions, amounted on June 30, 1934 to approximately $15,606,140. 

The total indebtedness of county and local governments has been computed as of 
June 30, 1933, the latest date for which complete data could be secured, and is indi¬ 
cated in Table IV below. 

TABLE IV 

INDEBTEDNESS OF COUNTY AND LOCAL GOVERNMENTS IN OKLAHOMA 
, " (As of June 30, 1933) _ 

Funded Floating Total 

$ 37,426,456.00 $11,068,651.00 $ 48,495,107.00 

97,662,065.00 3,881,445.00 101,443,510.00 

8,119,061.00 lt,569,374.00' 9.688,435.00- 

53,898,567.00 19,299,149.00 73,197,716.00 

$197,006,149.00 $35,818,619.00 $232,824,768.00 


Counties - 

Municipalities — 
Townships 
School Districts 
Total 
























































ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


431 


A local indebtedness of $232,S24,768, pins tbe small state debt at that time, means 
an indebtedness of almost exactly $100 per capita, or $500 per family of five, in addition 
to such amounts of private indebtedness as the people of Oklahoma may be carrying. 
Moreover, it will be noted that while the Constitution limits the debts of local govern¬ 
ments to 5 per cent of the assessed valuation of property, various factors, including the 
depreciation of property values since portions of the debt were incurred, have pushed 
the total indebtedness far in excess of that limit. The assessed valuation of all the 
property in the state in 1933 was $1,232,731,121. A debt of $232,824,768 is 19 per cent 
of that property valuation. 



CHAPTER XXIX' 

AN ANALYSIS OF OKLAHOMA’S TAX SYSTEM 

In previous chapters we have outlined briefly the background, and development of 
the tax system and ■have presented a statistical cross-section of the broad stream of 
revenue that flows through the channels of this system into the treasuries of state 
and local governments. Before undertaking any suggestions for new sources of revenue 
or changes in tax legislation, we should like to do three things. 

The first is to make an analysis of the tax system—its essential elements, its ad¬ 
ministration, and operation—as it stood in January 1935. 

The second is to undertake, on the basis of such principles as may be applicable, 
some appraisal of the merit, character, and effectiveness of the system as it stood at 
that time. If these sound like somewhat the same things, the similarity is in name 
only. They are two different things, and we should like to do the two jobs separately. 
The first is a draftsman’s job, a matter of blue-printing the tax system — its organi¬ 
zation, placement of its machinery, its operation, “routings,” and so forth. The second 
is the more difficult engineering task of appraising the efficiency or inefficiency of the 
various elements and operations of the system and of the system as a whole. 

The third thing is to appraise the extent to which the emergency legislation of 1935 
remedied the defects and effected the necessary changes in the existing tax system: in 
short, to determine the areas in which the legislation of 1935 solved the revenue problems 
of the state and the areas which are left for further effort toward solution. It will be 
in the latter areas that our recommendations will be. And it is believed that if the 
groups who are now working on the problem will have the patience to work through 
some such preliminary analysis and appraisal — or to make their own — they will be in a 
position to develop a wiser solution in those areas which still call for further effort. 
These three things, therefore, will be the subject of this and the two succeeding chapters. 

TAX BASES 

In analyzing the tax system ns it stood in January 1935, we have classified the 
various forms of taxation within four major groups, according to the underlying bases 
of taxation on which they rest, namely, property taxes, production taxes, consumption 
taxes, and taxes on distribution. It is obvious that any sharp distinction among these 
different groups is impossible — and probably unnecessary. Taxes on any one basis 
affect, directly or indirectly, the other bases. Property taxes affect production; con¬ 
sumption taxes react in some degree upon production, and so forth. Nevertheless these 
are the essential bases of taxation; all taxes rest substantially on the one basis or the 
other; and the character and effects of a state’s tax system will be determined largely 
by the extent to which it emphasizes one or another of the underlying bases. An income 
tax is fundamentally different from a property tax, and a gasoline tax fundamentally 
different from both. 

What is not so obvious and has not commonly been recognized is that while a tax 
on any one of these bases may shift its effects to another basis, this process operates 
almost uniformly in one direction, namely, in the order of our enumeration above. This 
is property, production, consumption, and distribution. Property taxes tend to be 
shifted to production; production taxes tend to be shifted to consumers; consumption 
taxes directly affect the distribution of incomes. So that in constructing a tax system 
a legislature will wisely keep in mind two things: The first, that any system it con¬ 
structs must rest predominantly on one or another of these underlying bases; the sec¬ 
ond is that so far as these bases may tend to slip from under, they will “slide” almost 
uniformly downward in the direction enumerated. 

One common idea about the shifting of taxes, however, is plainly fallacious. This 
is the frequent remark that “no matter what taxes may be placed on, they are all paid 
by the consumer eventually.” There is probably no more completely erroneous notion 
in the whole field of taxation. There are taxes that never come within a mile of the 
consumer—there may be no consumer. Where is the tax on Canadian thistles shifted to? 
Sometimes a tax reduces the price of a thing, and the consumer enjoys the tax instead 
of paying it. 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


433 


One of the largest fields of taxation in the United States has been in exactly this 
position for the past decade or longer. This is the field of farm taxes. It can be 
! demonstrated that most of the farm taxes that have been levied—prior to the appear¬ 
ance of the processing taxes—have, like other farm costs, had the effect of forcing 
increased efforts for production on the part of farmers, with the result of increased 
supply and lower prices for farm products. There are some businesses where taxes 
will force people out of production; farming is not one of them. Every increase in 
costs, taxes, or what not, only forces farmers and their families to greater effort for 
saving and production. And it would be possible for urban populations, if they had the 
political leverage and were so minded, to load more and more of their tax burdens on 
the farm populations and at the same time lower the cost of food and farm products 
to themselves; and the only limit the process would be reached when farm populations 
were reduced to a starvation level and abandon the rural areas en masse. Ironically 
enough, the urban community which demonstrated this process—and its limits — is the 
same which now houses the International Institute of Agriculture. 

On this basis we have set up the following outline of the tax system: 

I. The Property Tax 

II. Taxes on Production and Business 

1. Corporation License Tax 

2. Gross Production Taxes 

3. Motor Carrier Taxes 

. 4. Gross Receipts Tax 

III. Taxes on Consumption 

1. Motor Vehicle License Tax 

2. The Gasoline Tax 

3. The Retail Sales Tax 

4. The Beverage Taxes 

IV. Taxes on Distribution 

1. The Income Tax 

2. The Inheritance Tax 

In this outline the assignment of particular taxes to any group rests on even less 
distinct grounds than the groups themselves. The gasoline tax on gasoline used in 
commercial cars is a tax on business; on gasoline used in family and pleasure cars,, it 
becomes a tax on consumption. We have placed these various taxes in the groups which 
seem to represent their predominating characteristic. If any one can do his thinking 
more clearly by assigning them to more than one grouping, or by distributing them 
among various' groupings, he can easily do so. The groupings here given will serve 
for purposes of discussion in the present chapter. 


THE PROPERTY TAX 

Proportion Represented by the Property Tax. In Chapter XXMII it was computed 
that in 1933 property taxes represented 89 per cent of all taxes levied by or on account 
of local governments, 71.5 per. cent of total taxes levied by all governments, and 53 
per cent of total revenues of all governments. The abolition of the state levy and the 
development of increased revenues from other sources will substantially reduce the 
nronortion derived from property taxes. Any statistical measurement of the amount 
of probable reduction is impossible. But on the basis of such rough calculations as can 
be made it mav be estimated that at the present time property taxes represent not 
more than 64 per cent of total taxes of all governments, and probably not more than 

46 per cent of total revenues. , . , 

There is of course, no formula for determining what proportion of governmental bur¬ 
dens “ought’’ to rest on property and what on other bases of taxation. Some extremely 
ingenious studies have been made in an effort to develop such a formula through a o- 
■ cation of the proportions in which real estate shares in the benefits of governmental 
services. Their results afford no guidance, because, in the first place they assume 
that nropertv ought to be taxed in proportion to benefits received, which few students 
of taxation will concede: and because, in the second place, no statistical technique has 
vet been derived bv which it is possible to allocate government benefits quantitatively 
to particular groups or particular classes of property. 



434 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


What proportion of taxes ought to be levied on property depends upon one’s general 
theory of taxation and upon conditions in each state. We do not find that the theory 
of property taxation—whatever it may be—differs greatly in Oklahoma from that of 
other states, or that conditions affecting property taxation are essentially different. 
And we conclude therefore that an assignment of 64 per cent of taxes, or 46 per cent 
of governmental revenues, to property represents, on the whole, progress toward a health 
distribution of tax burdens. 

Tax Limitation. This result has been brought about in part by constitutional lim¬ 
itations upon the rates of property taxation, which have been described in previous 
chapters. 

Since these limitations have been in operation ever since the adoption of the Con¬ 
stitution in 1907, they suggest the possibility of garnering some valuable experience 
with reference to the effectiveness of tax limitations in general in securing economy 
in governmental expenditures and reduction of tax burdens. If these limits may appear 
to have been so liberal (31.5 mills until 1935, and 27 thereafter, exclusive of debt re¬ 
quirements) as to deprive them of effectiveness, that result has been prevented by 
the low level of assessments in relation to full value of property. Unfortunately, re¬ 
sources have not been available for making even a limited study of the actual relation 
of assessed valuations to sales value. Such a study would greatly increase the pre¬ 
cision with which a number of problems could be treated. 

But the general testimony is to the effect that the average level of assessments 
throughout the state probably lies between 30 and 50 per cent of full value. The 
consensus of estimates would suggest that it probably averages 40 to 45 per cent. If 
we take the latter figure, then a maximum rate of 27 mills, applied to a 45 per cent 
valuation means an actual maximum of approximately 1.25 per cent upon the full value 
of property. So that the general pressure for lower assessments has done what the 
Constitution left undone in the way of defining an effective tax limit. Between these 
upper and nether millstones, the fact is that property taxes have actually been “redticed.” 

It is true that if we take the total property taxes levied by county and local gov¬ 
ernments for 1933, namely, ..$51,248,203, and divide this by the total assessed valuation 
of property in the state for that year, as reported by the Tax Commission, 1 namely, 
$1,232,731,121, we arrive at an average tax rate for the entire state of 4.16 per cent of 
assessed valuation. The difference between this rate of 41 mills and the constitutional 
maximum of 27 mills is presumably accounted for by debt requirements. Tf we as¬ 
sume an average assessment at 45 per cent of full value, .this becomes an average rate 
of 1.87 per cent, or approximately 19 mills, on the full value of property in the state. In 
view of the fact that the debt service of county and local governments for that year 
amounted to $17,370,000, while their total property tax levies amounted to the $51,248,- 
203 quoted above, it is apparent that debt requirements absorbed approximately one- 
third of their tax levies—which again brings the average levy throughout the state, 
for ordinary expenses, down to 12 and a fraction mills on the full value of property. 
So far as can be ascertained, this is materially lower than in most other states that 
would be properly comparable with Oklahoma. 

Further evidence is available in the experience and testimony of local government 
officials. The 15 mills available under the constitutional limit is apportioned annually 
among county, municipal, and other local units by the county excise boards. During 
the past year tremendous pressure has been brought upon these boards by represen¬ 
tatives of the various governmental units to secure larger shares of these 15 mills— 
a degree of pressure which, it seems apparent, would certainly have produced higher 
tax rates in these various units, if the constitutional limitation had not set up an in¬ 
surmountable barrier. And on the whole it seems apparent that the high levels of pub¬ 
lic expenditxires established during preceding years of prosperity, the shrinkage of other 
sources of revenue, the pressure of demands for public relief, and the embarrassment 
caused by heavy tax delinquency must inevitably have caused substantially heavier 
levies upon property, if the constitutional limit had not made this impossible. 

Net Results. It would seem, therefore, that the net results of Oklahoma’s exper- 


Tteport, 1934, p. 150. 



ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


435 


ience with constitutional tax limitation will be found to lie along the following lines: 

1. It has established an effective limitation upon tax levies, perhaps particularly 
in times of financial stress and embarrassment on the part of local governments. 

2. It has undoubtedly only shifted a part of the pressure of revenue needs from 
taxes to borrowing. How much pressure tax limitation has exerted in this direction 
there is no means of determining; but it has unquestionably been a factor in pushing 
local indebtedness in 1933 to the amount of $232,284,768, which represents 19 per cent 
of the assessed valuation of property for that year. 

3. In the third place, the limitation upon property levies appears to have contributed 
powerful pressure toward bringing about the adoption of other forms of taxation. This 
has necessarily taken the form of demands for income, sales, and other types of taxes 
that can best be administered by the state, with allocations of portions of the revenue 
back to local governments. One cannot generalize too readily here without more in¬ 
tensive study of the political history of recent tax legislation. It is recommended as a 
fruitful subject for a doctoral dissertation at one of the universities, in the held of po¬ 
litical pressures. But meanwhile it appears that much of the propelling force back of 
recent state tax legislation has come not from groups primarily interested in state 
finances, but from those concerned with local expenditure, who have been driven to 
these cases of relief by the dearth of revenues remaining out on the great Sahara of 
property taxation. 

From the standpoint of sound taxation, this is a wholesome result. Indeed, it is 
the one rational justification for rigid tax limitation provisions. Perhaps the only fur¬ 
ther comment necessary is that it is a pity that all this has to be secured at the cost of 
the otherwise disturbing and confusing results of constitutional tax limitations. 

THE SYSTEM OF ASSESSMENT 

Prior to 1911 assessments in Oklahoma were made by elective township, town, and 
city assessors. In that year the legislature abolished these local assessing officers and 
transferred all assessment duties to county assessors. 1 * 

County Assessors. These county assessors are elected for two year terms. Their 
salaries are fixed by schedule under an Act of 1933, 3 and range from $1,200, in coun¬ 
ties having a population of 14,500 or less, to $4,000 in counties having a population of 
200,000 or over. Under this schedule it appears that 17 counties pay their assessors 
$1,200. Of the 77 counties in the state, 64 pay their assessors from $1,200 to $1,800. 
Tulsa County, containing the city of Tulsa, pays $3,600, and Oklahoma County, con¬ 
taining the capital city and metropolis, pays $4,000. A limited allowance for deputies 
and assistants is provided, subject to rigid statutory limitations. 3 These limitations 
are such that in the less populous counties, the assessor is permitted to spend only 
$300; and in only three counties in the state may he spend more than $2,000 for as¬ 
sistants, with provisions that under certain contingencies the county excise boards may 
appropriate a few hundred dollars additional. 

The Constitution provides that property shall be assessed at “the price it would 
bring at a fair, voluntary sale.” 4 Personal property is assessed annually, real estate 
in alternate and odd-numbered years. Real estate is assessed as of January 1. “Stocks 
of goods, wares, and merchandise” are to be assessed at average value for the preced¬ 
ing year. Unmanufactured farm products, such as cotton and tobacco, are to be 
assessed at their value on the preceding May 31. 

The assessment process begins in January with the posting of notices by the 
county assessor, “in three or more conspicuous places” in each city or voting precinct, 
that he will sit in a certain school house, garage or other convenient structure on cer¬ 
tain specific dates, to receive the assessment “lists” which property holders are re¬ 
quired to file. The statutes require the assessor to sit in these “conspicuous places” in 
each city or precinct for half-a-day for every 60 voters inhabiting the city or precinct. 5 

'Laws. 1910-11. Chap. 152. 

"Laws, 1933, Chap. 11. * 

'Laws. 1919. Chaps. 301 and 29. 

4 Art. X. Sec. 8 

'Laws, 1933, Chap. 115, See. 3. 




436 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


To these school houses or other selected points, property holders come with their own 
assessments of their various properties. If, however, any taxpayer shall “fail to meet 
the assessor” at the time and place advertised, he “may,” in the language of the 
statute, “meet him in another city” and observe the formalities incident to such a meet¬ 
ing. 1 

The assessor is required to hold these meetings from January 15 to February 15. 
From that date until March 1 he is required to be at his office in the county seat in 
order to receive lists from property holders who have not previously made the required 
returns. The statute provides that any property holder who has not listed his prop¬ 
erty by March 1 “shall be delinquent,” and shall be subjected to a penalty in the form 
of $1.00 to be “added to his tax.” 

If, notwithstanding all of the opportunities provided for “meeting” the assessor, 
any property holder actually refuses or, in any case, fails to list his property, the asses¬ 
sor is authorized himself to “list the property of such person” and, as a penalty, to add 
“fifty per cent to the actual value thereof.” The severity of the methods to which the 
assessor may then resort in arriving at the actual value of such a property are indi¬ 
cated by the provision that he may examine on oath “any person whom he supposes 
to have knowledge in relation to the property,” and by the further provision that “if 
any person refuses to testify when so required, he shall forfeit the sum of five dollars.”" 

In general, the statute appears to visualize the whole function of the assessor as 
that of examining people “whom he supposes” to know something about the properties 
rather than the properties themselves. There is one section, however, consisting of three 
lines, which provides that the assessor “may, when necessary . . . enter any dwelling 
house, building or structure, and view the same,”' 1 3 In any case, on or before the fourth 
Monday in April, the county assessor completes his assessment roll and certifies it to 
the county board of equalization. 4 

The County Board of Equalization. The county board of equalization is composed 
of three resident householders and freeholders of the county, not less than 21 years 
old, one of whom is appointed by the State Tax Commission, one by the county com¬ 
missioners, and one by the district judge or judges. Their terms of office are cotermin¬ 
ous with that of the county commissioners. Their membership, incidentally, is identical 
with that of the county excise board, discussed in another connection. 5 

The county board of equalization meets on the fourth Monday in April, wffien, ac¬ 
cording to the statute, it is expected to receive the assessment roll of the county from 
the county assessor. It has authority “to equalize, correct, and adjust the assessed 
valuation of real and personal property of any taxpayer by raising or lowering the 
valuation of the property, real or personal, to conform to the fair cash value thereof, 
as defined by law, and to add omitted property.” It is authorized to hear complaints, 
to order whatever adjustment it thinks fair, and to correct the assessment roll accord¬ 
ingly. In case any assessment it raised or any property added, five days’ notice in 
writing must be given the owner of the property. 

The taxpayer may appeal from the action of the comity board of equalization by 
filing notice with the secretary of the board within ten days after adjournment of said 
board. Failure to do so bars such right of appeal. Appeal from decisions of the county 
board of equalization may be taken to the district court, from whose decisions there is 
an appeal to the Supreme Court. 

After the county board of equalization has completed its work of adjusting the 
equalizing assessments within the county, which it is required to do before the first 
Monday in June, the county assessor corrects and revises his assessment roll accord¬ 
ingly and prepares an abstract of same. This he formally certifies to the State Board 
of Equalization. A more recent statute provides, however, that all lists of taxable 

Taws, 1933. Chap. 115, Sec. 3. 

2 Stat. 1931, Sec. 12597. 

3 Stat. 1931, Chap. 66, Sec. 12588. 

Taws. 1933, Chap. 115, Sec. 5. * 

! Stat. 1931, Chap. 66, Art. 21; Laws, 1933, Chap. 115, Secs. 5-7. 



ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


437 


property winch county officials are required to file with any state official, are now T re¬ 
quired to be filed with the Oklahoma Tax Commission, not later than the third Mon¬ 
day in June of each year. The Tax Commission renders its findings to the State Board 
of Equalization. 

The State Tax Commission. The present State Tax Commission was created by 
act of January 19, 1931. 1 It was created largely to perform the functions conferred by 
the Constitution upon the State Board of Equalization but which that Board is not 
adapted to perform. It illustrates the axiom that government bodies are more easily 
created than abolished. 

The Tax Commission consists of three members who are appointed by the Governor 
and hold office subject to his approval. The Commission has certain vaguely defined 
supervision over local assessment and is assigned three specific functions of its own. 
The first is the assessment of railroad and public service property; the second, “the 
adjustment and equalization of the valuation of all real and personal property of the 
several counties of the state”; the third is the actual collection of an unusual variety of 
taxes. In fact, the statute creating the Commission imposes upon it the duty of collect¬ 
ing all states taxes, by quoting vebat.im the clause of the Constitution 2 enumerating the 
various forms of taxes that the legislature may levy. 3 

The general status and activity of the Commission will be discussed more at length 
in other connections. Here we are concerned with its relation to the assessment of 
property, in which its duties include the assessment of public service property and 
the equalization of all property assessments among counties But under the Constitu¬ 
tion 4 these duties are specifically assigned to the State Board of Equalization. Con¬ 
sequently the statute bridges the difficulty with a pons asinorum to the effect that the 
“findings” of the Tax Commission “shall, by said Commission, be laid before the State 
Board of Equalization as recommendations for its final action.” We are informed 
that thus far the Board of Equalization has almost uniformly followed the “findings” 
of the State Tax Commission. 

Under this arrangement, therefore, the county assessor now certifies his assess¬ 
ment roll to the State Tax Commission not later than the third Monday in June. The 
statutes apparently provide no specific period within which the equalization work of 
the Tax Commission must be performed; but the period available is obviously brief, 
since the State Board of Equalization is required to begin its sessions on the third 
Monday in June. 

Meanwhile, prior to this date, the Tax Commission is presumed to have completed 
its valuations of public service corporations; and these valuations, along with the as¬ 
sessments of general property as made by the county assessors and county boards of 
equalization, now go to the State Board of Equalization. 

The State Board of Equalization . 5 The Constitution provides that the State Board 
of Equalization shall consist of the Governor, State Auditor, State Treasurer, Secretary 
of State, Attorney General, State Examiner and Inspector, and the President of the 
State Board of Agriculture. 6 

The duties of the State Board of Equalization are three-fold, namely, fixing the 
rate of taxation for state purposes, adjusting and equalizing assessments between coun¬ 
ties and classes of property, and making the original assessment of all railroad and 
public service corporation property. 

The legislature has subsequently prescribed the duties of this Board in greater 
detail. 7 It is required to hold a session at the capital, beginning on the third Monday 
in June, to examine the various county assessments, to equalize, correct, and adjust the 
same as between the counties by increasing or decreasing the aggregate assessed value 

Taws, 1931, Chap. 66. Art. 1. 

^Art« X ? Soc. 12. 

3 Stat. 1931, Chap, 66, Art. 1, Sec. 12297. 

4 Art. X, Sec. 21. 

5 This statement of the operations of the State Board of Equalization is from L. D. Melton. 
A Study of the Centralized Control of Local Finances, 1933. 

6 Const., Art. X, Sec. 21. 

7 Stat. 1931, Sec. 12656; also Laws, 1933, Chap. 115. 



438 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


of the property or classes thereof, and to order the assessment rolls of any county in 
the state to be so corrected as to adjust and equalize the valuation of the real and per¬ 
sonal property of the several counties. No change in the assessed valuation of any 
county is binding, however, until ten days’ notice of such change has been given the 
board of county commissioners. This last is for the purpose of giving the county an 
opportunity to be heard, if it objects to the change. 

In the case of Wallace v. Bullen , 1 and in numerous other decisions, the State Su¬ 
preme Court has held that the State Board of Equalization cannot raise or lower in¬ 
dividual assessments, but that it can raise and lower assessments of classes of property, 
notwithstanding such adjustments result in an increase in total county or state valua¬ 
tions. 

Following the adjustment of the valuations of the several counties as outlined 
above, the State Board of Equalization causes the valuations, as corrected, to be re¬ 
turned to the county assessors, who must then revise their assessment rolls accordingly. 

The Constitution provides that the State Board of Equalization shall assess the 
property of railroads and other public service corporation property. But in 1931 the 
legislature provided that all lists, schedules, reports, and returns of public service cor¬ 
porations and railroads relating to assessment of property shall be filed with the State 
Tax Commission, which shall lay its findings before the State Board of Equalization. 

After having assessed all public service corporation property in the state, the State 
Board of Equalization directs the same to be certified by the State Auditor to the coun¬ 
ty clerks of the respective counties in which such property is located, to be spread upon 
the rolls. 2 3 But since the passage of the county assessor’s act, in which that official is 
charged with the preparation of assessment and tax rolls, the State Auditor certifies all 
such valuations to the county assessor. 8 

Appeal may be taken to the Supreme Court from the rulings of the State Board of 
Equalization by any aggrieved person, or by a county, through its attorney. 4 

All property having thus been assessed and equalized by the assessor and the two 
boards of equalization, the county assessor, within five days of the receipt of public 
service corporation assessments and equalized valuations of real and personal property 
from the State Board of Equalization, prepares a report to the county excise board 
containing a list of the total valuations of the county and of all political subdivisions 
therein, for the use of that body in determining the rate of tax, or levy, to be charged 
against them. 

This entire process of assessment and equalization is indicated graphically in Chart I. 


N 


’6 Okla. 757, 54 Pae. 974. 

2 Stat. 1931, Sec. 12410 

3 Laws, 1910-11, Chap. 152. 

4 Laws, 1933, Chap. 115. 



TRANSMITS PUBLIC SERVICE. CORPORATION VALUATIONS 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


439 


CHART X 

THE PROCESS OF ASSESSMENT 
AND EQUALIZATION IN OKLAHOMA 



L D MELTON 


ADJUSTED ABSTRACTS RETURNED TO ASSESSOR WITH 






































440 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


Railroad and Public Service Property. Railroad and public service property are 
assessed by the State Board of Equalization on the “findings” of the State Tax Com¬ 
mission. One of the propelling forces that led to the creation of the new Tax Commis¬ 
sion in 1931 was a popular demand for a higher assessment of the property of public 
service corporations; and the Commission, in its report for the period of 1931-34, ex¬ 
pands at considerable length on the fulfillment of the popular demand in the form of 
an increase of $64,272,766 in the total assessment of railroad and public service property 
for 1931 over that of the previous year. 1 For some reason the Commission proceeded to 
reverse this action in the following year and thereafter. The total assessments of 
these classes of property since 1931 have been as follows: 


Year Railroad Property Other Public All Public 

Service Property S'ervice Property 


TQqft <£344 993 37C 

1931 ~ ~ IIIIII $193,803,857 $214,692,285 408A96P42 

1932 _._ 156,157,471 175,026,263 331,183,734 

1933 _ 139,616,196 159,576,403 299,192,599 

1934 _ 139,777,976 166,145,427 305,9,23,403 


The sudden increase of $64,272,766 in 1931 was wiped out by a decrease of $77,312,408 
in 1932 and a further decrease in 1933. The explanation offered is that the increase 
in 1931 only brought railroad and public service property into line with the prevailing 
levels of farm property and real estate; and that from that year the levels of assess¬ 
ment of all property have been reduced in recognition of the actual deflation of values 
subsequent to 1931. 

The valuations of public service property are made annually, as of January 1, on 
the basis of full reports made by the companies. The usual factors of valuation are 
applied, including in the case of the railroads, for example, stock and bond values over 
a five-year or other period, earnings, and cost of reproduction. Apportionment of in¬ 
terstate valuations in the case of the railroads are based on composite averages of 
various bases, including mileage — main track and all-mileage — operating revenues, ton- 
miles, and other traffic units, car and locomotive mileage, and reproduction cost. 

There are no objective tests by which to judge the results of assessment in this 
field, but two comments may be offered. The first is that the methods applied and the 
general character of administration in this department would suggest a much more 
competent assessment of railroad and public service property than that of real estate 
and general property. The second is that, so far as can be ascertained, there appears 
to be no systematic equalization of the valuations of public service properties and that 
of general property. There cannot well be any such equalization without more accurate 
knowledge of what the general level of assessment is throughout the state and there 
is some ground for conjecturing that there is no such thing as any “general level” of 
assessment by which to equalize anything. 

One would be tempted to conjecture that the superior assessment of public service 
property and the absence of any equalization with the real estate and general property 
might account in some degree for the comparatively high proportion of public service 
property in the total property valuation of the state. By reference to Table III (Chap. 
XX\ ) it will be seen that the public service property valuation is 24.3 per cent, or 
approximately one-fourth of the total property valuation for the state. On the face of 
it, it seems Scarcely possible that public service property can actually constitute such 
a fraction of the total wealth of the state. 

It is explained in part by the substantial categories of property that are not em- 
biaced in ad valorem taxation. This includes operating' oil and gas properties and lead, 
zinc, and asphalt mining properties which are subject to the 3 per cent (since April 1, 
1935, 5 per cent) gross production tax in lieu of property taxes; automobiles, trucks, 
busses, and motor vehicles of all kinds, which are subject only to the motor vehicle 
license and motor carrier taxes; the property of banks and financial institutions (other 
than real estate and physical property) which are subject only to the income tax; the 
property of insurance companies, other than real estate and taxable personal property; 
and to this perhaps should be added the household furniture exemption of $100 to heads 
of families and $200 exemption for war veterans. 


J Report of the Oklahoma Tax Commission, 1934, pp. 22-25. 












ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


441 


Altogether these categories of property outside the pale of property taxation must 
reduce substantially the total property valuation against which the public service valua¬ 
tions are compared. Whether this is adequate to explain the unusually high proportions 
of public service valuations in the aggregate for the state, there is no means of determin¬ 
ing. 

Personal Property. Personal property in general is assessed by the county assessors 
in the course of the regular assessment. General testimony is to the effect that there 
are wide variations in the valuation of personal property and in the proportions of 
personal property that get on the assessment rolls at all. These conditions of course 
are common to most of the states. But reference again to Table III (Chap. XXV) will 
indicate that in 1934, personal property represented only 15 per cent of the total prop¬ 
erty valuation, which is lower than the proportion found in most states. 

Chronology of Assessment. We will conclude our analysis with a chart of outline 
which, it is hoped, will afford a comprehensive picture of the whole prbcess of assess¬ 
ment, levy, and collection of property taxes. 


442 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


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ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


443 


TAXES ON PRODUCTION AND BUSINESS 

Corporation License Tax. Corporations organized in Oklahoma or doing business 
in Oklahoma are subject to an annual license fee of $1.00 per $1,000 of the value of 
capital stock employed in the state, with a minimum fee of $10.00 and a maximum of 
$ 10 , 000 / 

The tax is administered and the fees collected by the State Tax Commission. It 
yielded in 1934, $077,373. 

Gross Production Taxes. The following gross production taxes are levied in lieu 
of taxes upon any property rights attached to or inherent in the right to ores, minerals, 
oil, or gas. But no property is exempt from ad valorem taxation unless actually neces¬ 
sary and being used for the production of oil, gas, or minerals. The rates here given 
are those in effect prior to the legislation of 1935. 


Production 

Oil _ 

Gas _ 

Asphalt and lead, zinc, “jack,” gold, silver, 
or copper bearing ores 

On salvaged oil _ 

On any oil of which the actual source is not 
disclosed _ 


Taxes * 2 

3 per cent of gross value of production 
3 per cent of gross value of production 

% of 1 per cent of gross value of production 

12% per cent in addition to the regular 
gross production tax 

12% per cent in addition to the regular 
gross production tax 


These taxes are payable monthly. They are administered and collected by the 
State Tax Commission. They yielded in 1934, $4,790,604. 

Motor Carrier Tax. All persons engaged in the transportation of persons or goods 
by “motor vehicle,” are doing an inter-city business, in addition to the motor vehicle 
registration license fees and to a filing or permit fee of $25.00, are subject to mileage 
taxes, graduated according to the seating capacity of passenger vehicles or according to 
the “unladen weight” of trucks and property carrying vehicles. The rates per mile for 
passenger vehicles range from 3 to 15 mills; for trucks and similar vehicles, 4 to 10 mills. 3 

The tax is payable monthly, is administered by the Tax Commission, and yielded 
in 1934, $523,385. The general testimony of tax officials is that the tax is extremely 
difficudt to administer and there is much understatement and evasion. 

Gross Receipts Tax. A tax of 4 per cent is imposed on the gross earnings of 
freight cars owned by other than railroad companies. 4 The tax is in lieu of ad valorem 

taxation, and is administered by the Tax Commission. 

. i 

TAXES ON CONSUMPTION 

There is no clear-cut distinction between taxes on production and taxes on con¬ 
sumption, since there are few taxes on production which are not shifted in substantial 
degree to consumers; but there is a large group of taxes which are levied so directly on 
process of consumption or on goods so close to the stage of final consumption that there 
is little opportunity for their incidence to rest on any but consumers. In this group we 
are classifying the motor license taxes, gasoline tax, the retail sales tax, and the 
beverage taxes. Even within this group, the motor and gasoline taxes represent both 
production and consumption taxes, in the proportion in which automobiles and gasoline 
are employed for business or for other purposes; and the retail sales and beverage taxes 
partake of the character of business taxes to the extent that differences in rates or ap¬ 
plications of the tax affect competitive conditions in carrying on business. Nevertheless, 
all of them rest substantially on consumers — in proportion to their consumption—and 
may therefore properly be designated consumption taxes. 


Taws, 1933. Chap. 650. 

2 Laws, 1933, Chap. 103. 

3 Laws. 1933, Chap. 156. 

“Laws, 1933, Chap. 97. 







444 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


Motor Vehicle License Tax . 1 In lieu of ad valorem taxes, motor vehicles are sub¬ 
ject to an annual license fee. In the case of automobiles and motor vehicles the rates 
are based upon manufacturers’ list price, being $10.00 on a list price of $500.00 or less and 
$1.00 for each $100 of price in excess of $500.00. But for the second and for seven sub¬ 
sequent years of the life of a car this is reduced by 20 per cent of the previous year’s 
rate, with a minimum rate of $2.50. 

In the case of trucks, trailers, etc., the rates are based on unladen weight, ranging 
from $7.50 to $300.00 with an annual reduction of 20 per cent, to a minimum of $5.00. 
In the case of busses, the rates are based on seating capacity, ranging from $5.00 to 
$7.00 per seat, with provision for an annual reduction of 20 per cent, to a minimum of 
$5.00. The fee for tractors and special motor equipment is based on horse power, rang¬ 
ing from 50 cents per horse power for the first year to 10 cents for the fifth year and 
each year thereafter. 

License plates are issued by the State Tax Commission, through “tag agents” ap¬ 
pointed by the Commission in various localities throughout the state. These agents are 
not permitted to charge for their services more than the legal rate for motor fees, which 
in the past is reported to have been 50 cents. 

Since the services in connection with issuing a license plate are very meager and 
of a kind that can be performed by the most inexperienced clerical assistance, these 
have proved to be lucrative appointments and have consequently assumed the character 
of valuable political patronage. In recent years they have been a source of widespread 
popular irritation. 

The revenue from license fees is distributed as follows: 

5 per cent to the State Tax Commission for administration of the tax. 

38 per cent to the state, to be credited to the Highway Construction and Maintenance 

Fund. 

57 per cent to the counties from which derived, with the provision that of this 57 per 
cent, 14.25 per cent must go to the cities and towns from which derived, to be credited to the 
“Street and Alley Fund.” Counties are required to place the remainder of their apportion¬ 
ment to the credit of the county highway construction and maintenance fund, with certain 
provisions relative to bond retirement and other obligations. 

It will be noted that, although substantially the entire revenue from the motor 
license fees is devoted to construction and maintenance of highways, nevertheless the 
license fee is in lieu of all property taxes on motor vehicles. If it requires the entire 
proceeds, in addition to other sources of highway funds, to maintain the highways for 
motor traffic, the implication would he that motor vehicles are paying only for the 
specific costs they impose upon state and local governments, and contributing nothing 
to the general expenses of government. 

Total collections from motor license fees for 1934 are reported by the Tax Commis¬ 
sion 2 as $3,032,975. Motor vehicle registrations for the year are reported as $522,787, 
which would indicate an average payment per vehicle of $5.80 toward construction and 
up keep of highways and nothing for the up-keep of government otherwise. 

The Gasoline Tax . 3 Oklahoma imposes a gasoline tax of 4 cents per gallon. Gaso¬ 
line used for agricultural purposes is exempt, simply on declaration of the purchasers that 
it is to be used for this purpose. General testimony is to the effect that this form of 
exemption has led to flagrant evasion and other abuses. It will be kept in mind that 
we are speaking here of the statute as it stood prior to the legislation of 1935. 

The revenue derived is distributed on the following somewhat complicated schedule: 

2 per cent to the Tax Commission for administration. 

29.4 per cent to special fund for payment of state indebtedness in form of warrants 
issued prior to July 1, 1933. 

44.1 per cent to State Highway Construction and Maintenance Fund. 


Taws, 1933, Chap. 113. 

2 Report. 1934, p. 200. 

3 Stat. 1931, Sec. 12527. 



ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


445 


24.5 per cent to State Highway Commission, to be apportioned among counties on basis 
of population and area. 

The tax yielded in 1934, $10,523,419. 

The Retail Sales Tax . 1 A sales’ tax of 1 per cent was enacted in 1933, as an emer¬ 
gency tax, to expire on June 30, 1935. It embraces the following types of transactions: 

Retail sales of taxable personal property 

Amusement tickets and admissions 

. Sales of electricity and gas to consumers, whether domestic or industrial 

Telephone service 

Radio service 

Sales of food, drinks, and confections by hotels, restaurants, etc. 

Exemptions include: 

•Livestock and farm products 

Oil, gas, and minerals, and other raw products—when sold for resale 

Wholesale sales for resale 

Sales of gasoline and “beer,” the latter as defined in the statutes 

The tax is administered by tlie State Tax Commission, and is payable monthly. The 
revenue is distributed as follows : 

3 per cent to the Tax Commission for administration 

50 per cent to the counties for schools on a scholastic per capita enumeration basis, to 
be used for reduction of ad valorem taxes 17 per cent (but not to exceed $1,000,000 annually) 
to be allocated to the School Equalization Fund 

30 per cent to counties on a scholastic enumeration basis, “for common school relief” 

The tax yielded in 1934, $3,825,003. 

The Beverage Taxes. A tax of $2.50 per barrel is imposed on beverages containing 
in excess of one-half of 1 per cent alcohol by volume and not more than 3.2 per cent by 
weight. The tax is payable monthly by the wholesale vendor, or by the retailer when 
purchased from wholesalers outside of the state. 

In addition to this tax, licenses are required at the following rates: 


Manufacturers _ $1,000 

Wholesalers _ 250 

Retailers _ 100 


The tax is administered by the Tax Commission and yielded, in 1934, $716,309. The 
revenue is distributed: 

5 per cent to the Tax Commission for administration 

95 per cent to counties, on a scholastic enumeration basis, to be apportioned to the com¬ 
mon school fund 

TAXES ON DISTRIBUTION 

In this group we include those taxes which are levied not on property in its 
ordinary uses or in process of production and consumption, but on wealth and income 
in the process of distribution among the members of society. Here it happens we have 
two forms of taxation, one resting on the distribution of income and one on the distri¬ 
bution of wealth. 

The Income Tax. Oklahoma has had some perfunctory form of income tax since 
1915. The present statute was adopted in 1933, as a part of Governor Murray’s “radical” 
tax program. 2 It applies to both individuals and corporations, embraces the usual 
categories of taxable income, and permits the usual deductions. The exemptions are: 
$1,000 for a single person, $2,000 for husband and wife, and $500 for each dependent, 
permitting a total exemption, therefore, of $3,000 for a typical family of parents and 
two children. Corporations have no exemptions. 

The rates for both individuals and corporations are: 

1 per cent on the first $2,000 of taxable income 

2 per cent on the second $2,000 of taxable income 

3 per cent on the next $3,000 of taxable income 


Taws, 1933. Chap. 196. 

2 Laws, 1933, Chap. 195, Sec. 6. 






446 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


4 per cent on the next $3,000 of taxable income 

5 per cent on the next $4,000 of taxable income 

6 per cent on “the remainder of such excess amount” 

Banks and trust companies are taxed under this statute in lieu of all taxes on their 
property other than real estate and tangible personal property subject to local assess¬ 
ment and taxation. 

The revenue is distributed as follows: 

3 per cent , to the State Tax Commission for administration 

2 per cent to an Income Tax Adjustment Fund 

23.75 per cent to the State’s General Fund 

71.25 per cent to the counties for support of the common schools, on a scholastic 

enumerative basis. 

The auditing of returns and collections of income taxes have apparently lagged so 
far behind from year to year that it is difficult to report the actual revenue assignable 
to any one year. The total collections for the year ending June 30, 1934 are reported as 
$1,775,107. 1 But of this total, $872,893 represents collections of back .taxes for previous 
years, leaving $902,214 assignable to the fiscal year 1934. This latter sum will in turn 
be augmented by delayed collections of 1934 taxes in subsequent years. 

The amount of income tax payable in 1934, on 19^33 incomes, is reported as: 

Individuals _$ 416,304.31 

Corporations _ 986,312.48 


Total_$1,402,616.79 

The administration of the income tax, so far as internal office administration is 
concerned, has apparently been competent. But so far as can be learned, there has ap¬ 
parently been a negligible amount of field work, with little or no local checking and in¬ 
vestigational work, and no effective auditing until within the past two years. Even this 
auditing began with remote years of the past and is still far from being caught up with 
current returns. The percentages of this and other taxes specifically allocated to the 
Tax Commission for costs of administration have provided not only ample but liberal 
funds for effective administration. But under the pressure for economy, large portions 
of those funds have been turned back to the State General Fund, and tax officers have 
boasted rather ostentatiously of the economies thus enforced. In the case of the income 
tax it has been costly economy, not only in terms of the actual revenue that could have 
been secured by more effective administration but in terms of lowered taxpayers’ morale 
in consequence. 

The Inheritance Tax . 2 If past income taxes have been perfunctory, the Oklahoma 
inheritance tax has been perfunctory to the point of being a’most' nominal. The total 
revenue derived therefrom in the fiscal year 1934 was $144,511.60. The reasons therefor 
will appear in the terms of the statute and also in the methods of administration. The 
tax is imposed on the various shares in the estate, not on the estate as a whole. Exemp¬ 


tions are as follows: 

Widow _ $15,000 

Child _10.000 

Husband, father, mother, grandchild -._ 5,000 

Brother, sister, son-in-law, daughter-in-law - 1.000 

Uncle, aunt, cousin, niece, nephew, and all other relatives_ 500 


It will be noted that in case of a widow, two children, parent or grandparent, and a 
brother or sister, with no allowance for aunts, nieces, or “all others,” this schedule would 
permit a total exemption of $42,000 before application of even the 1 per cent rate on 
the excess. In addition to these exemptions, an examination of the probate court records 
indicates apparently a common practice of permitting exemptions of homestead, although 
we can find no statutory authorization for doing so. (A homestead exemption provision 
has been incorporated in the inheritance tax statute of 1935.) 


1 Report of Oklahoma Tax Commission, 1934, p. 185. 

2 Stat., 1931. Sec. 12473, and Laws, 1933, Chap. 141. 












ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


447 


The rates are graduated both according to degree of relationship and to amount of 
the shares of various beneficiaries. Each share is figured separately, and the rate 
bracket is determined by the size of the individual share, regardless of the size of the 
estate as a whole. The rates range from 1 per cent on the first .$25,000 of taxable value 
(in excess of exemptions) to 16 per cent on a value in excess of $10,000,000. It will be 
noted that this 16 per cent rate is never reached unless more than $10,000,000 falls to 
the share of a single beneficiary. 

A special clause provides that in case the sum of the taxes- imposed on any estate 
does not equal 80 per cent of the amount that would be due under the federal estate tax, 
a supplementary “estate tax,” equal to the difference, shall be imposed, in order to en¬ 
able the state to take full advantage of the 80 per cent credit permitted under the fed¬ 
eral tax. 

The administration of the inheritance tax is subject to the same criticism made 
upon the income tax administration above; namely, that it has apparently been almost 
entirely what we call “desk” administration, with little or no field or investigational 
work. The Tax Commission, under the pressure for economy and other factors, has 
relied almost entirely on the perfunctory reports of the probate courts, except in a few 
occasional cases of estates of conspicuous size. 

Of the small revenue yielded, 8 per cent is allocated to the Tax Commission and 97 
per cent to the state’s general revenue. 


CHAPTER XXX 

AN APPRAISAL OF THE TAX SYSTEM 1 

A state tax system in the United States is one of the most complicated pieces of 
political machinery in the world. Most of them were never designed by either God or 
man, and probably neither would recognize his handicraft in them. They have been 
“assembled” rather than built; assembled over long periods of time, from whatever 
parts and accessories happened to be “handy,” and according to the random ideas of 
successive groups of mechanics who have worked upon them. If we built automobiles 
that way, no one could tell what a car would do next or which way to run from it. 
Consequently it is difficult to appraise any state tax system as a whole; and, so far as we 
have observed, it has seldom been attempted. The Oklahoma tax system is made up of 
heterogeneous elements, some of which represent the finest pieces of governmental 
machinery, and some of which will ruin any tax machinery. 

GENERAL FEATURES 

Constitutional Prohibition of State Levy on Property and Limitation of Local Rates. 

The general position of students of taxation has always been that arbitrary constitutional 
limitations are unwise. The choice of sources of revenue for the state and even the amount 
of local taxation ought ordinarily to be matters of legislative determination in the light 
of existing conditions from time to time. 

But with reference to the particular limitations under consideration here, it must 
be admitted that the assignment to the state of other sources of revenue than the prop¬ 
erty tax only embodies what has been an ideal of tax students for many years. The 
growing burdens of municipal and local government and the limited range of revenue 
sources available to them strongly suggest that the state may wisely leave the field of 
property taxation to them. Those states which have reached the place where they can 
withdraw from the field of property taxation have commonly considered this an achieve¬ 
ment of note, and in this achievement Oklahoma can take legitimate pride. 

Likewise it may be said that a tax limitation that permits a maximum levy of 27 
mills is not something to worry greatly about. Both provisions, it is conceded, are mat¬ 
ters of policy that ought not to be made matters of constitutional law; and they may 
plague taxpayers of another generation, if conditions should change fundamentally ; but 
they are not subjects of concern at present. 

Moreover, under the actual conditions prevailing in most states, both limitations have 
one very practical justification. This is their effectiveness in compelling the develop¬ 
ment of other forms of taxation than the property tax. In many states the opposition 
of interested groups to the development of these other types of taxation is so organized 
and powerful that “tax revolt” in the form of rigid limitations of property tax levies 
is about the only means of bringing them about. At bottom this is what tax limitation 
is—a revolt of farm and real estate owners against further exclusive dependence upon 
the property tax for the support of state and local governments. As such, we are in¬ 
clined to feel that in the present stage of development of the tax system in Oklahoma, 
tax limitation is still an appropriate weapon of evolution. 

The Constitutional State Board of Equalization. From the standpoint of every 
sound principle of administration, the State Board of Equalization is a vestigial remnant 
which no longer performs any useful function. Its ex officio composition is such as to 
make it ill adapted as an administrative agency in matters of taxation. Its essential 
functions are now being performed—extra-legally—by the State Tax Commission; but 
the round-about procedure by which this is accomplished is cumbersome and confusing 
and tends to impair the directness and effectiveness of the Tax Commission’s perform¬ 
ance of these functions. It is clear that the Board should be abolished, by a simple 
and direct constitutional amendment to that effect, and its function of assessment and 
equalization definitely transferred to the Tax Commission. 

A Misfit System. The tax system does not adequately reflect the special natural 
resources of the state. A system that is based in any degree upon taxpaying capacity 
should reflect the various resources of a state and should reflect them somewhat in the 


*As of January 1935.- 




ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


449 


piopoi ions in which these resources are represented in the economic structure of the 
f a e * tine not merely in the interest of equitable distribution of tax burdens 

but of the maintenance of a sound and dependable revenue system. Chapter XXV of the 
present study included a rough inventory of the resources of Oklahoma for the purpose, 

m part, of indicating the background which should be reflected in the state’s revenue 
system. 


Unhappily, the history of taxation reveals two opposite ways in which the tax sys¬ 
tem. may reflect the distribution of wealth and resources: One is by taxation and one 
by exemption of the dominant forms of wealth. The latter has been the chse where the 
possessors of dominant forms of wealth have been able to dominate the tax system In 
° Wn ^ n ^ eies ^- elaborate system of license and occupation taxes characteristic 

ot the Southern states grew up in consequence of the ability of the former landed 
aristocracy to shift tax hardens from their own form of wealth to other less strongly 
entrenched groups. The relative exemption of manufacturing industries in Pennsyl¬ 
vania “reflect” the position long held by manufacturing groups in the political as well 
as the economic life of that state. The relative exemption in years past of public 
utility property in some states and of mining property in others are further examples 

of tax systems which have reflected inversely the dominant forms of wealth in these 
various states. 


Oklahoma will have to choose whether the tax system is to reflect directly or in¬ 
versely the special oil, gas, and mineral resources of the state. We need only point out 
here that in the past the 3 per cent gross production tax' on oil and the special taxes on 
other mineral resources enumerated in the preceding chapter have not adequately reflected 
the special position which these resources occupy in the economic structure of the state. 

Exploitation of State Government by Local Governments. In its government finances 
Oklahoma is preeminently a “local government” state. It has home rule and local 

autonomy ad libitum. It has local assessment, local equalization, local school districts_ 

many of them still further localized with reference to the situation of oil tank farms and 
other profitable sources of local revenue. And not only is there virtually no supervision 
or control over local finances, but the local government groups have in a sense inverted 
the form of government and are now subsisting largely on the state government. We 
have indicated in Table III, Chapter XXVIII that of a total of $29,865,004 taxes col¬ 
lected by the state in 1934, $10,384,870. or 35 per cent, were allocated directly to counties 
and other local units, in addition to those direct expenditures by the state which are 
themselves largely in the interest of local communities. And since no corresponding 
degree of responsibility or control has been vested in the state, the state government has 
now become largely only a “collection agency” for the local units. Local units are 
evolving into spending agencies for the state. It is an effective arrangement to facilitate 
the expenditure of revenues. 

Three somewhat striking features characterize the distribution of these revenues, 
(a) In the first place, most of these allocations take the form of fixed percentages of the 
various taxes concerned, 71 % per cent of the income tax, 49 per cent of the gross produc¬ 
tion taxes, 97 per cent of the sales tax, and so forth, (b) In the second place, the alloca¬ 
tion from the income tax, through a rigidly prescribed procedure, must be applied to the 
direct reduction of property tax levies by the respective local jurisdictions, (c) In the 
third place, these liberal allocations are made with practically no control by the state 
government over the expenditure of these funds, the policies associated with them, or 
standards of service rendered. 

It is true there are some special considerations in support of each of these arrange¬ 
ments. In support of the first, it is urged that a definite percentage allocation out of 
specific taxes avoids the recurrent consideration of appropriations to local governments 
by every legislative session, accompanied by the log-rolling politics which prevail in 
other states and which, we gather, are not unknown in Oklahoma. In support of the 
second, it was urged when the 1933 income tax was under consideration, that it should 
carry assurance of relief from property taxes and of not becoming merely “an additional 
tax.” This was accomplished by making the allocation to local governments applicable 
lirectly against property tax levies. And finally, the general absence of state control is 
i reflection of a strong home rule sentiment and of an unusually intense sectionalism. 

These considerations afford some explanation of this feature of the tax system, but 



450 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


they do not remove certain fundamental objections to it. In the first place, the allocation 
of a specific percentage, from a specific tax, for a specific purpose, even when that may be 
as broad a purpose as common school education, may eliminate a certain amount of 
political manipulation, but it also largely eliminates the possibility of any efficient manage¬ 
ment of financial resources and wise adjustment of expenditures. It is much as if a 
lawyer should budget a certain percentage of all fees from railroad eases for medical 
service for his family. It would give a certain precision to matters of the family budget 
and perhaps avoid a certain amount of domestic consideration and argument; but after 
all there is no necessary connection between the amount of railroad litigation carried 
on in any one year and the need of medical service for one’s family. In the same way 
the variations in the yield of the gross production tax on oil correspond more closely 
to changes in the price of crude oil than to any changes in the needs of the common 
schools. 

In the second place, the reduction of local property taxes is a desirable objective; 
but any conception of the income tax which limits its usefulness to that of a “reducing 
machine” for property taxes is an inadequate conception of the scope of income taxation. 

In the third place, the general trend in the field of local government at the present 
time is toward more definite placing of responsibility and commonly toward some degree 
of centralizing responsibility and control. The provision by the state of funds for local 
spending bodies necessarily diminishes in some degree the responsibility of these bodies 
to their own communities, by relieving them to that extent of the unpleasant task of 
levying taxes, with the accountability to taxpayers which that imposes. For that matter, 
when this relief takes the form of fixed percentages of state taxes, it more or less relieves 
the legislature of responsibility likewise, since once these taxes and percentages are 
adopted, the revenues thereafter flow more or less automatically, without apparent re¬ 
sponsibility on anybody’s part. When such revenues are applied directly to the reduction 
of locally levied taxes, the accountability for tax burdens and tax policies is still further 
diminished. If such policies were carried far enough, local governing bodies would be¬ 
come entirely spending bodies—with all the political power which that confers and none 
of the political accountability which responsibility for tax policies commonly imposes. 

The net result is an actual lessening of accountability on the part of officials and a 
lessening of effective control on the part of citizens and taxpayers. And it is this 
which creates the specific need for a larger degree of some form of control, supervision, 
or specification on the part of the state government which provides this increasing por¬ 
tion of the funds for the expenditures of local governments. A continuation of the 
present policy of large subventions from the state to local governments with no corre¬ 
sponding increase in responsibility and control by the state government will be found 
to be an unwise and dangerous policy. 

General Failure of Tax Administration. The one most impressive characteristic of 
the whole tax system in Oklahoma is the conspicuous weakness and failure of its ad¬ 
ministrative organization and procedure. This applies in varying degrees, but it ap¬ 
plies more or less throughout the entire tax system. 

Perhaps its most conspicuous failure is found in the field which represents the 
one largest source of revenue, namely the property tax. Here it is scarcely necessary 
to do more than refer to the system of assessment described in the preceding chapter. 
The virtual abolition of the townships and adoption of the county as the unit for 
assessment purposes could have provided the initial basis for an efficient assessment 
organization. But the office of county assessor is elective, the assessor has a term of 
only two years, which under a system of biennial assessment of real estate means that 
he is elected to make only one assessment, and the salary is not sufficient to compensate 
him for making any. The statute does not contemplate that he should make any, since 
it provides that his duty is practically limited to sitting in some “conspicuous” place to 
receive the valuations reported to him by property holders. 

The result of the whole thing is a system of virtual self-assessment, which has never 
worked anywhere else and holds no promise of ever working equitably in Oklahoma. 
That it has been possible to get along with it at all is a tribute to the good sense of 
both assessors and taxpayers. But the general testimony is that assessments vary great¬ 
ly between counties and between classes of property, and common report suggests almost 
fantastic variations in the assessments of individual properties. Unfortunately re- 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


451 


sources were not made available for a concrete field study of the actual conditions of 
assessment—and this is part of the story; there is apparently no one in Oklahoma who 
knows what the general level of assessment is, among counties or classes of property, 
or knows what or where the variations from uniformity are, or in what direction they lie. 

Under these conditions no intelligent equalization can be made and apparently none 
is attempted. The county boards of equalization would afford adequate machinery for 
local equalization, if they were provided with adequate information — and with some 
effective supervision by a state authority. 

The State Tax Commission, which should provide state-wide equalization, will be dis¬ 
cussed more fully below. But here it may be said that its usefulness as an agency for 
equalization of assessments has been hampered by inadequate authority in the super¬ 
vision of the original assessments and in the equalization of them afterwards, by the 
necessity under the Constitution of having to function through the cumbersome procedure 
of reporting “its findings” to the State Board of Equalization, and by the fact that it 
has not seen fit in the past to equip itself with information necessary for intelligent 
equalization. 

In the areas-of state taxation the routine clerical processes of administration by the 
Tax Commission have apparently been highly efficient. But the income, inheritance, 
gasoline, and sales taxes are not taxes that can be successfully administered by clerical 
administration. They require a large amount of field work, auditing, systematic check¬ 
ing and follow-up, and broader types of investigational work. Out of motives of 
economy or other considerations this type of administration has been almost entirely 
neglected. 

The result has been that in these fields again, Oklahoma has had virtually a system 
of voluntary tax payment, as it has had voluntary assessment in the field of property 
taxation. There are few other states which have depended so largely on voluntary tax 
assessments and tax payment. In a sense, it is substituting “drive” and semi-voluntary 
contributions in place of orderly and eqtiitable processes of taxation. That it has 
worked no worse than it has may again be a tribute to the general good sense, char¬ 
acteristic of the people of Oklahoma. But it has meant substantial losses of revenue 
and has penalized unduly the more honest and public spirited classes of taxpayers. 
If long continued, it cannot but have a demoralizing effect upon general tax-paying 
morale. 

Place of the State Tax Commission. A state tax commission ordinarily performs 
four more or less specific functions, namely: (a) Original assessment of certain types 
of property such as that of the railroads and public service corporations, (b) supervision 
over local assessment and general tax administration, (c) equalization of assessments 
throughout the state, and (d) collection of certain special taxes. Of these the Okla¬ 
homa Tax Commission has in the past performed the first in its assessment of public ser¬ 
vice corporations, subject to the approval of the State Board of Equalization. So far as can 
be learned, it has done nothing toward the performance of the second or third of these 
functions, largely through lack of adequate authority. It has in a sense hurdled these 
to reach the fourth, the tax collection, a task which the state has concentrated in the 
Commission to a degree that few. if any, other states have done. 

It may almost be said that the Oklahoma Tax Commission has been a tax collecting 
agency rather than an administrative or enualizing body. Of the total taxes collected 
by the state government in 1934 ($29,865,004), the Tax Commission actually collected 
$26,401,930, or 89 per cent. Inquiry of a dozen other states discloses that the Wiscon¬ 
sin Commission. w T hicli has to some extent served as a model in the evolution of state 
tax commissions, collected no taxes whatever prior to 1933. In that year the collection 
of income taxes was turned over to the Tax Commission, on account of unsatisfactory 
collection by the State Treasurer’s office. The Illinois commission collects no taxes. 
The Indiana commission collects only the intangibles tax: the Michigan commission only 
the severance tax on oil and gas: the Minnesota Tax Commission only the income tax: 
the Kansas commission dhe income tax; the California State Board collects the sales 
tax. On the other hand, the South Carolina commission collects the income, inheritance, 
corporation excise, gasoline, beverage, and some miscellaneous taxes: and the Mississip¬ 
pi commission, in 1934, collected 45% per cent of all the receipts paid in to the state gen¬ 
eral fund. 


452 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


We have thus far found no state in which the tax commission performs the func¬ 
tion of a collection agency to the extent that it does in Oklahoma. We find, however, 
that there is a pronounced trend toward transferring a larger share of tax collection 
to the state tax commissions. One commissioner asserts that in his state “the Tax 
Commission is not only a tax collecting but a tax assessing body as well.” This is cer¬ 
tainly putting the cart before the horse from the standpoint of the original purposes for 
which the state tax commissions were established. 

The reasons for the trend are sufficiently clear. The state treasurer in all states, so 
far as we know, is an elective officer with a limited tenure. He likewise, so far as we 
know, is generally more familiar with politics than with business administration and 
more concerned with party affiliations and strategy than with the collection of taxes. 
The process of tax collection tends, therefore, to become extremely perfunctory if not 
actually remiss, particularly in times of depression, when voluntary tax payments tend 
to lag. The consequence is that here, as in many other fields, we are compelled to 
remedy the incompetence of elective officers, not by abolishing or reconstituting them on 
some rational basis, but by continuing them as perfunctory berths for political incumbents 
and setting up some other agency to do their work. 

These conditions have been particularly prevalent in recent years; and we gather 
that the unique development of the Oklahoma Tax Commission as a collecting agency 
is only a polite acknowledgment of their prevalence in Oklahoma. There is a strong 
presumption that in this respect the Oklahoma Commission is only in line with a gen¬ 
eral trend, perhaps somewhat in advance of it, and we are inclined to think it a desirable 
trend. 

Other aspects of the status of the Tax Commission in the past are not so easily 
extenuated. It has apparently been considered in the past to be a political office and a 
legitimate part of the spoils system, its personnel and more or less its staff changing 
with every changing administration. It remains to be seen whether the new adminis¬ 
tration will be able to incorporate a more elevated conception of the place of the State 
Tax Commissioner in a framework of honest government. 

Furthermore, in past years the Commission has apparently functioned as a “one 
man” Commission, in the sense that its policies and administration have been determined 
entirely by its chairman, with apparent backing and intent of the state administration. 
However capable and conscientious the chairman may be, this is a fundamental mis¬ 
fortune. To some extent it accounts for the particular minor virtues and major defects 
in the past work of the Commission. The purpose of a commission of three rather than 
a single commissioner is to secure that element of discussion and deliberation that is es¬ 
sential in the formulation of the broad policies that devolve upon the commission. In 
past years this discussion and deliberation has taken the form largely of typewritten 
“minutes” which has been passed around for the signatures of members of the Commis¬ 
sion without the formality of any meetings. Here again it remains to be seen whether 
the newly appointed Commission will have the foresight to grasp this distinction. 

APPRAISAL OF PARTICULAR ELEMENTS OF THE TAX SYSTEM 

The Property Tax. Three features of the ad valorem tax in Oklahoma call for 
some comment. The first is the content of the ad valorem tax, the second its adminis¬ 
tration, and the third the problem of synchronizing property tax payments with the 
fiscal necessities of local governments. 

With reference to the first, it need only be said that the content of the ad valorem 
system is impaired by the continued efforts to tax money, household goods (above ex¬ 
emptions), personal belongings and some other forms of personal property, which are 
incapable of equitable assessment and ought not longer to be included within the scope 
of ad valorem taxation. The same characteristic applies to the continuation of the 
mill taxes on intangibles. The total yield of these intangibles taxes in 1934 as computed 
from county treasurers’ reports, amounted to $134,119.75. This is 5% cents per capita. 
Twenty-five counties in the state report no collections from intangibles whatever. * The 
total assessed valuation of securities for 1934 is reported at $4,619,000- professional 
libraries were assessed at $248,000; “abstract books and equipment” at $168 875- 
jewelry was assessed at an aggregate equivalent to 15% cents per person. It would 
seem that the experience of Oklahoma and other states had amply demonstrated the 
futility of attempting to assess these forms of property on an ad valorem basis. Such 


ORGANIZATION A^ T D ADMINISTRATION OF OKLAHOMA 


453 


attempts seem to result uniformly in discrimination on the part of assessors, evasion on 
the part of the holders of these forms of property, and in penalizing the few honest and 
public spirited taxpayers who do declare their property. There are other ways of 
reaching these forms of tax-paying ability, and the property tax ought not to be 
vitiated by their continued inclusion. 

The second feature, administration, has reference to the inadequate assessment and 
equalization of property taxes, which have been discussed sufficiently above. 

The third feature, the time of payment of property taxes, is a more difficult problem. 
Perhaps its fuller discussion should be deferred to the chapters dealing with our specific- 
recommendations. But here, from the standpoint of appraising the present system, it 
should be pointed out that at present the first quarterly payment of property taxes for 
a given year is not made payable until October 1st. The “penalty date,” which tends 
to become the effective date for this payment, is November 1st. But the fiscal year of 
the municipalities and local governments, for purposes of budgets, appropriations, and 
disbursements, begins on July 1. The interim of four months between the beginning 
of disbursements for a given year and the receipt of ad valorem taxes for meeting these 
disbursements imposes a considerable amount of hardship and some additional costs. 
Both are needless, since the situation can be prevented either by moving the assessment 
period backward, moving the fiscal year forward, or by the development of regular 
methods of short-term, anticipatory financing for the intervening period. All of these 
arrangements are matters of governmental control and are capable of being adjusted 
without any additional hardship to the taxpayers. 

The Income Tax. In view of the thorough-going revision of the income tax recom¬ 
mended and the substantial adoption of these recommendations in the emergency legis¬ 
lation of 1935, there is no need now for extended appraisal of the income tax as it stood 
at the beginning of 1935. From the outline of this tax in Chapter XXIX above, it will 
be apparent that the exemptions were too high, the rates too low, and other portions of 
the statute ineffectively drawn. In short, as an income tax, it was weak, thin and 
porous—weak in the administration provided, thin in the fact that in 1933, for example, 
the personal income tax applied to only slightly more than V 2 of 1 per cent of the 
population of the state, and porous in the large number of loopholes afforded for the 
escape of income or for evasion or understatement of actual income. These included 
particularly the provisions for application of depletion and capital losses, the provisions 
applying to banks, the treatment of interstate income, and the exemption of dividends. 

The result has been that the combined corporate and personal income tax yielded in 
1934 only $1,729,916, or approximately 2 per cent of total taxes levied — on the part of 
a tax which should constitute one of the major sources of revenue. 

The Inheritance Tax. What has been said about the income tax applies still more 
forcibly to the inheritance tax. The high exemptions, low rate schedules, inheritance 
type of structure, with no element of estate taxation except a supplementary provision 
to make it possible to apply the federal credit, and the ineffective administration pro¬ 
vided .nullified completely the effectiveness of the tax. The consequence was that while 
the statute carried all the paraphernalia of an inheritance tax, the state has had only 
a nominal tax, yielding in 1934 $144,511. 

Motor Vehicle License Tax. Two comments may be made on the motor vehicle 
license tax. The^first is that the license fee is in lieu of any ad valorem taxes on motor 
vehicles; and yet the rate charged is too low to represent even the equivalent of an 
ordinary tax, to say nothing of a charge to represent any share of the special benefit 
derived from use of the highways. Total license fees collected in 1934 amounted to 
$3.048,310; the number of vehicles registered is reported as 522,787 making the average 
fee per vehicle $5.83. This obviously could not represent, at the outside, more than 
the equivalent of an ad valorem tax of one per cent on full value, compared with an 
average rate of close to two per cent on the full value of other property. 

The second feature is what appears to be an excessive cost and certainly an exces¬ 
sive amount of irritation in the administration of the motor vehicle licenses. The 
license plates are issued by “tag agents,” appointed by the Tax Commission, located in 


’Oklahoma Tax Commission, Report, 1934, p. 200. 



454 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


various communities throughout the state, and authorized to charge 50 cents per 
license for their service. It is true, this is little more, if any, than the ordinary notary 
fees in states which still require the ‘‘notarizing” of application for motor licenses. But 
it is obvious that the services rendered in either case, whether by notaries or official 
“tag agents,” are purely clerical. The notarizing of motor license applications, in the 
wholesale and perfunctory manner in which it is performed, is meaningless except for 
the small amount of clerical help that may be incidentally afforded in explaining the 
meaning of terms and specifications. Any garage can do it as well—or better; and the 
payment of 50 cents for it seems to be a superfluous formality from the standpoint of the 
taxpayer and an excessive administration cost from the standpoint of the state. Fifty 
cents per vehicle, out of an average tax payment of $5.80 per vehicle, is equivalent to a 
cost of 8% per cent for administration of a tax which involves no appraisal, field work, 
or accounting, and is only a little more complicated than a poll tax! 

There are 136 “tag agents”—nearly twice as many tag agent» as assessors—paid an 
average of over $1,800 each per year, which is more than the average payment per as¬ 
sessor for the entire assessment of property for property taxes. Indeed, it is not far 
short of the total amount paid for the assessment of all property throughout the state, 
including the salaries of the assessors and all their expenses for assistance and opera¬ 
tion of their offices. If we assume an average fee of 50 cents per automobile tag for the 
522,787 motor vehicles registered for the year 1934, this amounts to $261,383. The total 
expenses for the county assessors’ offices of the 77 counties, as reported by the county 
treasurers for the year ending June 30, 1934, amounted only to $356,193.26. Between 
the labor and intelligence required to issue the automobile tags for the state, on the one 
hand, and to assess all the real estate and general property of the state, on the other, 
there is of course no comparison. Yet for every dollar the people of the state pay for 
the valuation of property, they pay 1 3 cents for someone to hand out automobile tags. 
There is obviously something wrong with the administration of one tax or the other, or 
both. It is scarcely necessary to add that the appointment of these tag agents has be¬ 
come a political emolument of considerable rivalry in local communities throughout the 
state. 

The Gasoline Tax. The gasoline tax in Oklahoma, as elsewhere, has been not only 
a products e but an extremely stable source of revenue throughout the depression The 
present rate of 4 cents a gallon was established in 1929. The revenue for the past three 
fiscal years has run as follows: 


1932 

1933 

1934 


$11,039,859 
10.240,09D 
10,520.300 


There appear to be two serious defects in the operation of the tax The first 
is the want of adequate inspection and sufficient field work to make the administration 
effective, particularly against the menace of a heavy boot-legging importation and dis¬ 
tribution. The second is the wide-open exemption of gasoline used for agricultural 
purposes, at the time of purchase. Universal testimony is to the effect that this has 
been a source of flagrant abuse on the part both of purchasers and dealers. Sales 
for agricultural purposes in 1934 were in round numbers 25,000 000 gallons out of a 
total reported of almost 300.000,000—an amount obviously impossible on the basis of 
the extent and type of farming operations in Oklahoma. Fortunately this defect in 
the tax has been remedied by the legislation of 1935. 

An issue of some importance in Oklahoma has been raised by the provision that 
40 per cent of the proceeds of the gasoline tax are to be devoted to payment of the 
state indebtedness in the form of warrants issued to cover temporary deficits incurred 
prior to July 1, 1933. This provision likewise has been revised in the emergency 
legislation of 1935. But the justifiability of “diversion” of gasoline taxes to other 
than highway purposes is an acute one throughout the country and likely to be a 
recalling one in Oklahoma. It may be fitting therefore to offer this comment. In 
normal times the essential justification for the gasoline tax is the fact that it repre¬ 
sents a payment for a very special type of benefit enjoyed by the owners of motor¬ 
cars. Highways are no longer the means of ordinary neighborhood travel and com¬ 
munication. They represent almost as specialized a form of transportation as the 
railroads or street railways and one that can as properly be asked to pay its own 





ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


455 


costs of construction and maintenance. This is the basis for the evolution of the 
gasoline taxes in the country since 1919. 

But this does not necessarily limit the tax relationships of gasoline consumption 
to highway expenditures. That is a payment for a special benefit. But if consumers 
in general are asked to contribute on! the basis of consumption for the general activities 
of government, gasoline consumers can reasonably be asked to contribute to the samd 
purposes, in addition to their payment for the maintenance of highways for their own/ 
particular use, just as those who travel or ship goods on the railways pay their own 
costs of railway transportation and make their various contributions to government 
besides. 

And not only should gasoline consumers be made subject to the same general obliga¬ 
tions as other consumers, but there is a large amount of gasoline consumption which, 
if it could be segregated from commercial use, is as distinctly a “luxury” as any 
category of consumption can well be. If the gasoline that is used on trips to Florida 
and California, on the rounds to roadhouses night clubs, and so forth, could be 
segregated for tax purposes, we would have for once a perfect category of luxury. 
We have no means of doing this; but in times of depression, the ability to own and 
drive an automobile for any other than business purposes is substantially a luxury 
and can properly be taxed as such—particularly in comparison with the levying of 
general sales taxes upon all articles of consumption, representing every degree of 
necessity. 

Consequently it may be said that there are two “gasoline” taxes: One scarcely a 
tax at all but a payment for the cost of a specialized benefit; the other a tax for 
general governmental activities, levied on the basis of a form of consumption that 
represents distinct elements of tax paying ability, if not luxury. It would greatly 
clarify the issue if the two taxes, when it is believed desirable to levy them, were 
levied separately and levied frankly for their respective purposes, without resort to 
the ambiguous processes of “diversion.” 

The Sales Tax. With a tax that has become involved in as bitter controversy 
as the sales tax, it is probably difficult to make an impartial appraisal—and certainly 
difficult to get an impartial hearing for it. A fuller consideration of this subject will 
therefore be reserved for discussion in connection with the recommendations in our 
concluding chapters. 

Here it will be sufficient to say that in Oklahoma, as in other states the sales 
tax has demonstrated its merit as a prompt and prolific revenue producer. The one 
cent retail sales tax went into operation July 10, 1938. In the midst of depression 
and under the handicaps necessarily involved in developing the administration of a 
new tax, it yielded, to the end of the fiscal year on June 30. 1981, $8,824,855. For the 
first ten months of its second fiscal year, that ending June 30, 1935, it. has yielded 
$3 922.684, an increase of 29 per cent over the corresponding period of the previous 
year. 

Moreover, in its present form it has apparently encountered comparatively little 
antagonism. This is presumably due in part to the low rate and to the fact that, 
it was commonly understood to be a temporary emergency tax. Indeed, for quite 
some time after our entrance upon this study, we were inclined to infer that every¬ 
body in Oklahoma was “crazy” to pay a sales tax, so general was its comm'endation. 
It developed subsequently that there was considerable opposition, lint from humbler 
and less audible sources than those from which its support came. In any case the 
present one per cent sales tax has afforded prompt and substantial relief to the state 
in the financial emergency of the past two years. 

SUMMARY 

In summary, we may say then that the outstanding characteristics of the Okla¬ 
homa tax system appear to be somewhat as follows: 

1. An effective reduction—through tax limitation and other policies—of the proportion 
represented hy property taxes in the entire revenue system. 

2. Its failure to reflect adequately the special natural resources of the state. 

3. The exploitation of the state as a collecting agency for local units. 

4. The anomalous position and functions of the State Tax Commission and the political 
character of its tenure. 


456 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


5. The general and conspicuous failure of its administration throughout pretty much 
the entire system. 

6. But an increasing effectiveness in the collection of state taxes, by placing this func¬ 
tion largely with the State Tax Commission. 

With regard to its particular forms of taxation we may summarize our com¬ 
ments somewhat as follows: 

1. The property tax, aside from its haphazard administration, is impaired by the con¬ 
tinued inclusion of various classes of personal property that can not be subjected to effective 
ad valorem taxation, and by the unfortunate timing of tax payments in relation to the fiscal 
year of the local governments. 

2. The income tax has been rendered ineffective by its high exemptions, low rate sched¬ 
ule, and by the loopholes liberally afforded for escape, evasion, and understatement of actual 

income. 

3. The inheritance tax has been almost completely nullified by its inheritance tax 
structure instead of an estate tax structure, by its high exemptions and low rate schedule, 
and by the loose provisions for its administration. 

4. The motor vehicle license tax is entirely too low to serve in lieu of al! ad valorem 
faxes, to say nothing of any special tax obligation of motor vehicles as such ; and its admin¬ 
istration through the present system of “tag agents” is needlessly expensive and irritating. 

5. The gasoline tax has been impaired by inadequate provision for inspection and 
field work, and by the unregulated exemption of gasoline for agricultural use at the »time 
of purchase. It has produced an unnecessary amount of irrigation through apparent “di¬ 
version of a portion of the revenue rather than frank taxation of gasoline consumption for 
specific purposes. 

6. The present one per cent sales tax has served a useful emergency purpose with 
apparently a minimum amount of antagonism. 

If our analysis of this tax system in the preceding chapter and our appraisal in 
the present are sound, it means that on the whole the revenue (problem of Oklahoma, 
at the opening of 1935 was not an extremely difficult one. In comparison with the 
situation in many other states it w r as in many respects, if not a pleasant or easy 
situation, at least what the physicians call a perfectly “normal” case of appendicitis 
or whatever it may be, in the sense of displaying perfectly known and familiar symp¬ 
toms responding to standard diagnosis, and amenable to- established treatment. This 
does not mean that there was not urgent necessity for many things to- be done. But' 
the particular needs of the state, the character of its resources, and its ample 
experience with the various elements of! its present tax system all combined to indicate 
with more than usual clearness the general lines along which progress and improvement 
could be made. 

Such improvement was made easier by the fact that Oklahoma, if not blessed 
with superabundant wealth, nevertheless has certain definite resources in its wealth 
and industry, whose capacity can at least be fairly estimated, by its freedom under 
the 'state Constitution to develop whatever forms of revenue may best serve its needs, 
and by the variety of forms of taxation already in use, which makes its problem 
largely one of amending and improving existing taxes rather than the more difficult 
one of introducing new taxes. We may add the further asset that apparently the 
state- is not dominated by any one economic interest or group of interests, such as 
mining, public utility, or financial groups, who are able either to dictate or to obstruct 
the development of broad tax policies. We say apparently, with the caution that 
behooves any generalization in this field. There are undoubtedly groups that would 
not be averse to occupying such a position. We infer that( they have not attained it. 

In all of these factors—the presence of some and the absence of others—the state, 
at the opening of 1935, had an unusually promising opportunity for solving its tax 
and revenue problems. We will endeavor in the following chapter to appraise its 
efforts in working out this solution. 


CHAPTER XXXI 

THE EMERGENCY LEGISLATION OF 1935 

In January 1935, the following memorandum was prepared for Governor-elect 
Norland and the Advisory Committee on Revenue and Taxation, prior to its meeting 
in Ponca City on January 8. Since this memorandum necessarily anticipated the gen¬ 
eral lines along which our final recommendations are shaped, it is included here to> 
serve the double purpose of a perspective for appraising the tax legislation of 1935 
apd a background from which to project our concluding recommendations. 

Your Executive Committee suggests that in attacking the complicated revenue problems 
of the State it will be highly advisable to lay out some systematic program of procedure— 
in order to clarify our problems, to avoid confusion, and to insure consideration of major 
problems before becoming entangled in conflicting details. For this purpose, we would sug¬ 
gest the following conception of our problem. 

I 

I 

In the first place, there are certain established types of taxation, which are recognized as 
essential elements in any sound revenue system, regardless of depressions, emergencies, and 
particular revenue needs. These are: 

Property Taxation, 

Income Taxation, 

Inheritance Taxation, 

and, in states having valuable mineral resources, 

Gross Production or Severance Taxes. 

We take it to be a matter of elementary common sense that before proposing new taxes 
and additional revenues, it should be the object of any revenue committee to see that in these 
fields of taxation the state is provided with intelligent, adequate, and equitable forms of taxes. 

Since property taxation is not now a source of state revenue, its consideration may well 
be postponed for the time being, to be included among the topics enumerated below for sub¬ 
sequent consideration. This leaves for immediate consideration : 

The Income Tax, 

The Inheritance Tax, 

The Severance or Gross Production Taxes. 

The Income Tax. In 1933, 15.687 persons paid income taxes in Oklahoma. If these 
taxpayers might be supposed to represent, with their families, some 70,000 population, this 
means that only 70 thousand out of a population of 2,459,000, or 2.8 per cent of the population 
of Oklahoma, ever came in contact with even the minimum provisions of the state income 
tax. But this whole population more or less is paying heavy taxation in the form of property 
taxes, gasoline taxes, sales tax, and miscellaneous taxes. The equitableness of this tax bur¬ 
den will be greatly improved if a larger portion of it is paid out of net income and paid in rela¬ 
tion to that net income. This will involve changes in rates and exemptions and provision for 
a vastly more effective administration of the income tax. It should be possible to double or 
treble the present yield of the personal income tax ; and it will provide the state with one of 
the essential elements of a sound and equitable revenue system for years to come. 

The Inheritance Tax. In the year ending June 30. 1934, only 327 estates paid any in¬ 
heritance tax in Oklahoma. They paid a total of $140,877 equal to a tax of 1% per cent upon 
the total value of these estates. So that those estates which paid any tax only paid the equiva¬ 
lent of one year’s property tax, and other estates paid nothing. Obviously, there is an oppor¬ 
tunity here to improve the equitableness of tax burdens and to provide the state with another 
essential element of a sound revenue system. 

Severance or Production Taxes. In the field of oil and mineral resources there appears 
to be a well-defined conviction that present methods are not satisfactory, and that present 
taxes do not adequately represent the position which these resources occupy in the economic 
wealth of the State. The field of severance and gross production taxes is one of fundamental 
importance in all the states endowed with large mineral wealth. These resources have peculiar 
social significance on account of the large private wealth derived therefrom, on account of the 
fact that the products of these resources are largely consumed outside of the state and that 
the income derived from them goes largely to residents of other states, and on account of the 
prospect of eventual exhaustion of these resources themselves. For all of these reasons it is 
important to determine at the earliest moment possible the position which this group of re¬ 
sources should occupy in the revenue system of the State and the methods of taxation which 
will most adequately represent this position. 


458 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


We believe that these three fields of taxation—income, inheritance, and production or 
severance taxes—should receive the immediate attention of the Revenue Committee, with a 
view to early submission of proposed legislation. The increase in revenue that can be antici¬ 
pated from these sources (while we cannot as yet offer anything in the nature of an actual 


estimate) might reasonably be: 

Income Tax _$1,000,000.00 

Inheritance Tax _ 500,000.00 

Gross Production Taxes _ 4,500,000.00 


Total Increase _$6,000,000.00 


II 

In the second place, there are a variety of taxes already established and operating more 
or less effectively, in which it. may be that, fundamental changes are not contemplated at the 
moment, but in which administrative experience has shown the need for specific amendment at 
one point or another. We are not prepared at the moment to enumerate all the fields in 
which such amendment may be found necessary, but they will presumably include the fields of: 

Bank Taxation 
Corporation Taxes 
Insurance Taxes 
Motor Vehicle Taxes 
Beverage Taxes 
The Gasoline Tax 

We believe that the Revenue Committee should carefully examine the operation of these 
and other tax statutes, in consultation with the administrative heads of the divisions engaged 
in the administration of these taxes, with a view to ascertaining where specific amendments 
may be needed to increase the equitableness or effectiveness of these statutes. This probably 
will not involve any attempt to rewrite these statutes or to remove all the defects that may 
fexist. There will presumably be room for improvement even after the work of this Revenue 
Committee has been done. But a opnscientious effort should be made to appropriate the 
benefit of administrative experience with these statutes; and wherever it is found that specific 
amendment in the terms of the statute or in administrative procedure will definitely improve 
the operation of the tax, these amendments should be made promptly. 

It is scarcely necessary to add that in practically all of the cases of this character that 
have come to the attention of the Committee, the effect of needed amendments will be to in¬ 
crease substantially the amount of revenue derived. 

III 

In the third place, after Income, Inheritance, and Production taxes have been set up 
and the most urgent amendments have been made in other tax statutes, a careful estimate 
should be made of the total increase in revenue that may be anticipated from all these sources. 
If this proves to be inadequate for budget needs, then the Committee should turn frankly to 
the consideration of sources of immediate revenue—as emergency measures, not as perma¬ 
nent elements of the State’s revenue system. This revenue will presumably be found in the 
areas of cigarette taxes, in increases in the sales and gasoline taxes, and possibly in other 
special taxes. These are dependable revenue producers and an administration can fall 
back upon them with assurance of revenue. But they should be used frankly as “revenue 
producers,” to supplement the regular revenue until the period of emergency is past. In the 
cas° of the gasoline tax, we are speaking here of course only of any increase in rates over the 
present rates. A reasonable level of gasoline rates, such as 3-5 cents, is recognized now as a 
necessary element in every state revenue system for highway purposes'. But we believe the 
committee will contribute greatly to the clarity of its own thought and that of the people of 
the State, if it will distinguish clearly between those measures which it designs as more or 
less permanent elements of the tax system and those which it utilizes for the purpose of 
emergency revenues. 

IV 

In the fourth place, after the necessary tax legislation has been worked, out and neces¬ 
sary revenues provided, we suggest that this Committee should concentrate its effort upon 
providing the state with an effective tax administration throughout the whole field of taxation. 
This is a field in which definite principles, procedures, and technique have been developed 
through long and painful experience. It is a field that is just as capable of competent and 
efficient administration as factory management or any other field of business administration. 

The value of a high level of tax administration lies not only in the fact that the revenues 
of the state and local governments can be greatly increased thereby, but still more in the 







ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


459 


fact that the level of taxpayers’ morale is itself determined chiefly by the level of tax ad¬ 
ministration. A high level of administration and of taxpaying morale means the difference 
between a condition of constant irritation and resentment, on the one hand, and freedom from 
it, on the other. From the standpoint of its value to the people of Oklahoma, this Com¬ 
mittee will leave its most important task undone, if, at a time when it is levying new taxes 
and increasing old ones, it does not provide the State with an administrative system that 
will carry the load with a minimum amount of waste and friction. 

In offering these suggestions we realize that after all this is a Citizens’ Committee and 
that its function is purely advisory. But nevertheless it is just as necessary for us to follow 
some orderly development in formulating our advice as it is for the legislature to follow some 
orderly development in formulating legislation. The outline of the problem above is sug¬ 
gested with the thought that it may offer some such orderly development in the process of 
formulating our advice. 

If will be noted that the force of circumstances guided the legislature more or 
less along the lines indicated in this Memorandum, in the enactment of the cigarette 
tax as an immediate revenue 'producer, in the thoroughgoing revision of the income, 
inheritance and gross production taxes, and in the deferment of any increases in the 
sa es tax pending more exact knowledge of further revenue necessities. 

This legislation will be summarized briefly. 

THE CIGARETTE TAX 1 

A cigarette tax is imposed at the rate of three cents per package of 20 cigarettes, 
or at the rate of $1.50 per 1,000. It is levied on “the person making the first sale 
thereof within this State,” intended to be ordinarily the jobber or wholesaler. Payment 
is made through the purchase of stamps from the Tax Commission, to be affixed to 
the individual packages. The tax is to be effective only to June 30, 1930. 

Of the revenue yielded, 5 per cent is to go to the Tax Commission for the cost 
of administration and the remainder to the state’s General Fund. 

THE INCOME TAX 

On January 25, 1935, the research staff of the Advisory Committee sent to the 
Committee of the House on Revenue and Taxation the draft of a suggested income 
tax bil 1 , embodying the following features: 

Exemptions of $500 for single persons, $1,000 for husband and wife, $250 for each de¬ 
pendent. 

A rate schedule on individual incomes graduated from one per cent to 12 per cent, the 
maximum applying to taxable income in excess of $100,000 A flat corporation tax rate 
of 6 per cent. 

Capital losses to be applied as deductions only to the amount of capital gains reported. 

Depletion allowances to be subject to a provision that total accumulated depletion on 
any property shall not be allowed in excess of the original cost of the property. 

No exemption of dividends to stockholders. 

A specific method of apportionment of the income of interstate corporations. 

The exclusion of insurance companies from the income tax, and substitution of a 3 per 
cent gross premium tax. 

The exclusion of banks from the income tax, on account of the apparent impossibility, 
under the limitations of the Federal Statutes, of taxing any substantial portion of their real 
income, and return of the banks to ad valorem taxation of their entire assets, until some 
more satisfactory adjustment could be made. 2 

The statute as adopted (H. B. No. 192, approved April 23, 1935), embodied the following: 
features: 

Exemptions of $850 for single persons, $1,700 for husband and wife, and $300 for each 
dependent. 

No exemption for corporations. 

The rates for individuals are graduated from one per cent on the first $1,000 of taxable 
income to 9 per cent on taxable income in excess of $8,000. 

On corporate income a flat rate of 6 per cent. 

Capital losses are “deductible only from the income of the year in which such losses are 
incurred or from the income of the next succeeding year, and only to an amount not exceed¬ 
ing the amount of capital gains reported for taxation for the same year.” 


J H. B. No. 361, approved March 20, 1935. 

2 Memorandum of Jan. 25, 1935, to the Committee of the House on Revenue and Taxation. 



400 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


“Reasonable” allowance for depreciation, depletion, obsolescence, with the provision that 
in the case of oil and mineral properties acquired prior to January 1, 1931, “no more than 
an amount representing the difference between the original cost of such properties and the 
depletion on such cost sustained up to that date, shall be the basis for computing depletion 
to be allowed during subsequent taxable years.” 

This provision is then nullified by a provision that in the case of oil and gas properties 
the owner “may at his option,” in lieu of the method above, deduct for depletion an amount 
not exceeding 20 per cent of the gross income from the net income for a given year. Similar 
options, of varying specific amounts, are allowed to owners of other mineral properties. In 
applying this tax, with its corporate rate of 6 per cent, to the banks, the statute specifically 
states that it is adopting “method numbered (4) ” of the Federal Statutes, Section 5219; and 
income is defined as income “from all sources,” including income from federal and other tax- 
exempt securities. 

In case this method should be held invalid, the statute provides that banks shall there¬ 
upon be subject to taxation “according to method numbered (1),” in the Federal Statute . 1 

Contrary to recommendation of the research group, insurance companies are still in¬ 
cluded in the income tax. Their gross income is defined as including all income “from inter¬ 
est, dividends, and rents.” Net income is gross income minus a variety of complicated ac¬ 
counting categories, including the provision that “investment expenses” may be deducted, 
but that “if any general expenses are in part assigned to or included in the investment ex¬ 
penses, the total deduction under this paragraph shall not exceed one-fourth of one per 
centum (14 of 1 %) of the book value of the mean of the invested assets held at the beginning 
and end of the taxable year.” 

The statute is to be administered and the taxes collected by the Tax Commission, which 
is given broad authority “to prescribe, promulgate, and enforce such rules and regulations 
as may be necessary to ascertain and compute the tax payable by any taxpayer.” 

It was estimated that the income tax as recommended by the research staff would yield , 
something more than $3,000,000 of revenue, even on the basis of current depression incomes. 
How materially the revenue will be decreased in consequence of raising the proposed exemp¬ 
tions, loAvering the proposed rates on the upper brackets, and eliminating the “cost” deple¬ 
tion clause, it would be difficult to estimate. 

Of the revenue from the income tax, 3 per cent is to go to the Tax Commission 
for costs of administration, 2 per cent to a Tax Adjustment Fund for payment of 
refunds and claims and the remainder to the General Fund. 

THE INHERITANCE TAX 

At the time of submitting our Income Tax Memorandum above, the research staff 
of the Advisory Committee also submitted for consideration by the Committee of the 
House on Revenue and Taxation a Memorandum on the Inheritance Tax. In this it 
was suggested that a statute be drawn, somewhat different from any existing statutes, 
in its combination of inheritance and estate tax features. 

All beneficiaries were to be divided into two groups. One representing a certain 
degree of intimacy of relationship, which the Committee suggested should be limited 
to husband or wife, parents, and children; the second group including all others with¬ 
out regard to direct or collateral classification. The inheritance tax principle of special 
consideration for immediate members of the family was to be recognized in the pro¬ 
vision that on that portion of an estate going to the first group of beneficiaries a flat 
exemption of $10,000 should be allowed. On any portion of the estate going to the 
second group, “all others,” no exemption was to be 1 allowed. The merits of the estate! 
tax principle were to be secured by the provision that this $10,000 exemption should 
constitute one tint exemption to the estate as a wdiole; and that on the entire excess 
of anv estate above this exemption, a single schedule of rates should apply, before* 
distr'bution of the estate among the various beneficiaries. The Committee recom¬ 
mended rates ranging from one per cent on the first $10,000 of taxable estate, above 1 
exemption and deductions to a maximum of 20 per cent on that portion of any estate 
in excess of $1,000,000. 

The statute enacted by the legislature (H. B. No. 511, approved April 23, 1935) 
embodied the following features: 


^Method number 4 in the Federal Statute is taxation “according to or measured by 
their net income”; method number 1 is taxation of the “shares of national banking asso¬ 
ciations.” 



ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


461 


All beneficiaries were divided into two groups, as recommended, but the group entitled to 
exemption was enlarged to include “any lineal descendant.” 

The single flat exemption was raised to $15,000. 

Specific exemptions are allowed as follows : 

The homestead to a value not in excess of $5,000. 

Insurance payable directly to the beneficiary not in excess of $20,000. 

War Risk Insurance, Veterans’ Adjusted Compensation, and all Federal War Veterans’ 

benefits. 

Gifts and bequests to religious, charitable, and educational institutions. (The Committee 
had risked an unsuccessful pioneering effort here in recommending against exemption of such 
bequests.) 

A rate schedule graduated from 1 per cent on the first $10,000 of taxable estate to a maxi¬ 
mum of 10 per cent, but reaching this maximum at $10,000,000, whereas the Committee had 
recommended making the maximum rate applicable to the value of the estate in excess of 
$ 1 , 000 , 000 . 

A special clause makes the usual provision for application of “an additional” tax to what¬ 
ever amount is necessary to enable the state to appropriate the federal credit of 80 per cent 
of the federal tax. 

General jurisdiction for determination of the tax is placed with the county courts. But 
a requirement of prompt and full report to the Tax Commission is imposed upon the court; 
and the Tax Commission itself is given broad powers for participation in probate proceedings 
and for general administration and enforcement of the tax. 

Of the revenue received, 5 per cent is allocated to the Tax Commission for costs of 
administration (certainly a liberal allowance), and the remaining 95 per cent goes to the 
state’s General Fund. 

GROSS PRODUCTION OR SEVERANCE TAXES 1 

The gross production taxes were increased to 5 per cent on gross value of oil 
and gas produced; three-fourths of one per cent on gross value of asphalt, ores bear¬ 
ing lead, zinc, jack, gold, silver, and cofpper. These taxes are, as previously, in lieu 
of all ad valorem taxes on land, property, “rights and privileges for the minerals 
aforesaid belonging or appertaining to land,” and upon machinery, equipment, and 
appliances used in the production of oil and minerals. 

The statute is to be administered and taxes collected by the Tax Commission. 
Of the revenue derived, 2 per cent is to go tol the Tax Commission for costs of admin¬ 
istration, 7S per cent to the state General Fund, 20 per cent to the counties from 
which derived, of which half is to go to a county highway construction and mainte¬ 
nance fund and half to school districts on the basis of “per capita student attendance.” 

These constitute the major fields of the 1935 tax legislation: The cigarette tax 
as a temporary revenue producer, and the income, inheritance, and severance taxes 
as presumably permanent elements in the state tax system. But in addition to 
these major pieces of legislation, the ‘legislature enacted quite a substantial group 
of miscellaneous tax statutes, which will be briefly summarized. 

MISCELLANEOUS TAX LEGISLATION 

Remission of Penalties. Chronologically, the first specific piece of tax legislation 1 
was an attempt to meet the widespread desire to clear up the delinquent tax situation. 
This provides in substance that all penalties, interest, and cost on delinquent property 
taxes and special assessments are cancelled, provided that delinquent taxes and special 
assessments for 1932 and prior years are paid by December 1. 1935: taxes and assess¬ 
ments for 1933 by August 1, 1935; taxes for 1934 by May 1, 1935. All penalties, in¬ 
terest, and costs on delinquent income, inheritance, and gross production taxes for 
any time prior to July 1, 1931 are remitted, provided that such taxes are paid in 
full by July 1, 1935. Certain validating clauses and other provisions are included 
to cover adjustments necessitated by cancellation of the above obligations. However 
objectionable this type of legislation is in principle, in view of the almost hopeless 
conditions of delinquency that had developed during the depression, it was about 
the only way to clear up the situation. It is to be hoped that the state will take 
more constructive measures in the future to forestall the recurrence of similar conditions. 


J H. B. No. S7, approved April 1. 1935. 

2 S. B. No. 11, approved February 8, 1935. 



462 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


The Gasoline Tax: Agricultural Exemption. House Bill 38 aims to correct the 
abuses associated with the exemption of gasoline used for agricultural purposes. It 
provides that farm purchasers shall pay the gasoline tax at the time of purchase and, 
within 90 days thereafter, make claim ujpon the Tax Commission for refund in the 
form of full statements and records, supported “by the oath of the claimant.” Any 
one making false statement or report is subject to jail sentence and fine. 

The Sales Tax. After prolonged consideration the legislature refused to increase 
the one per cent retail sales tax enacted in 1933. In the process of re-enacting the 
existing tax, however, some significant revisions were made. 

House Bill 440 re-enacts the tax, extending its life to July 1, 1937, broadens the 
list of services subject to the tax, and broadens the powers of the Tax Commission 
in the administration of the tax. It also revises the apportionment of revenue from 
the tax, discussed in previous chapters, allocating 5 per cent of the proceeds to the 
Tax Commission for the costs of administration and the remaining 95 per cent to the 
state general fund. 

House Bill 441 provides, in place of the sales tax, for the levy of an excise tax 
of one per cent on thq value of automobiles to be “levied and collected only at the 
time a motor vehicle is first licensed in this state.” Of the revenue yielded, 2 per 
cent is to go to the Tax Commission for costs of administration, the remaining 9S 
per cent to go to the state’s general fund. 

Forts of Entry. House Bill 355 authorizes the Tax Commission to establish “ports 
of entry,” not less than 25 nor more than 50' in number, to be policed by a forcu of 
inspectors, for the better enforcement of the motor vehicle license and motor carrier 
mileage taxes. 

Slot Machines. House Bill 410 imposes “an occupational license tax” upon oper¬ 
ators of slot machines, at the rate of $250 for each county in which any operator 
operates machines and an additional $250 for each additional 25 machines or fraction 
thereof operated in any county. For purposes of a further specific tax, slot machines 
are classified as (a) vending machines and (b) pin or marble machines. An annual 
tax of $20 per machine is imposed on vending machines and $12 on pin or marble 
machines, in addition to the initial license fee. 

Proposed Homestead Exemption Amendment. House Joint Resolution No. 4 au¬ 
thorizes the submission of a proposed constitutional amendment, to be voted upon 
at a Special election to be held September 24, 1935. 

In substance the amendment would authorize the legislature to exempt from ad 
valorem taxation homesteads “actually domiciled by the owner” to an amount of 
assessed valuation not to| exceed $1,500. But this, exemption is not to apply to indebted¬ 
ness “heretofore incurred”; or to special assessments for “improvements under the 
then or future existing laws” ; to any ad valorem taxes for the common schools. 

GENERAL CHARACTER OF RESULTS 

If we may! refer to our previous appraisal of the Oklahoma tax system as it stood 
in January 1935 it will be recalled that attention was called to the following defects: 

The extremely regressive character of the system as a whole. 

The failure of the system to adequately reflect the special natural resources of the state. 

The exploitation of the state government as a collection agency for local governments. 

The general administrative weakness and failure. In all of these respects the 
legislation of 1935 has effected substantial improvement. 

The cigarette tax, of course, is distinctly regressive in its burden. People do 

not smoke cigarettes in proportion to their wealth. So far as wealth is a factor, it is 

reflected in differences in the price of cigarettes, and this the tax takes no account of. 
But the cigarette tax is intended to be a temporary revenue producer; even if it is 

retained for some length of time, the increased proportion of income and inheritance 

taxation will have the effect of distinctly diminishing the regressive character of the 
tax system. 

The increase in the severance taxes will more adequately reflect the natural 
resources of the state. 

The changes in apportionment of revenues from the income, inheritance, gross 
production, and sales taxes, reducing the specific allocations to local governments and 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


463 


allocating the bulk of these revenues to the state’s general fund will at least moderate 
the character of the state’s obligation to local governments and make possible more 
adequate consideration of the needs of the state, it does not, of course, touch the 
problem of correlating state subventions to local governments with some corresponding 
degree of supervision and control. 

The strengthening qf the powers of the Tax Commission and the broadening of 
its administrative activities should go a long way toward remedying past adminis¬ 
trative defects—so far as the administration of state taxes is concerned. 

All of these are substantial steps and all of them are distinctly in the direction 
of improvement. But the major achievements of the 1935 legislation lie in its sub¬ 
stantial revision of the three major forms of taxation, namely, the income, inheritance, 
and gross production taxes. In these fields we believe, in accordance with our 
previous memoranda on these subjects, that the revision should have gone further 
than it did. In the case of the income tax the exemptions should have been further 
lowered, the rates in the upper brackets further increased, the depletion allowance 
put on a “cost” basis, and the exemption of dividends abolished. In the case of the 
inheritance tax, the maximum rates should be higher, and the inheritance tax should 
be buttressed by a gift tax. But after all, these things are somewhat matters of 
opinion and everything cannot be done at once. In any case, the revision of these 
three fields of taxation represents a legislative accomplishment of major significance. 

In addition to these major accomplishments, the gasoline tax has been improved 
by the provision for refunds instead of initial exemption of gasoline purchased for 
agricultural purposes; the sales tax has been improved by the inclusion of a wider 
range of application to sales of services and by broader powers of enforcement; and 
the motor carrier taxes have been improved by provision for better enforcement 
through the policing of ports of entry. Whatever one may think of the wisdom of 
this type of motor taxation, if the taxes are levied, they should be impartially enforced. 

And finally, the legislature accomplished something toward clearing up the de¬ 
pression debris, through the remission of penalties and costs of accumulated tax 
delinquency in return for the prompt payment of these delinquent taxes. 

It is apparent therefore that in the breadth and variety of subjects covered the 
legislation of 1935 constitutes a remarkably comprehensive record of legislation. It 
means that the state is now provided with at least four permanent major types of 
taxation, all of them drawn in accordance with good modern practice in these fields. 
These are in order of their revenue proportions, the motor and gasoline taxes, the 
gross production taxes, the income tax, and the inheritance tax. We are omitting 
for the moment the sales and cigarette taxes on account of some question of their 
permanence. But the four major sources enumerated should represent some $25,000,000 
of revenue, even under current conditions, and a substantially larger aggregate in 
periods of normal prosperity. One aspect of some significance in all this legislation 
is that the state has apparently provided adequately for its own immediate revenue 
needs, has put itself in position to assume its share of relief and recovery expenditure 
in cooperation with the federal government, and has projected a considerable amount 
of relief and reemployment expenditure on its own account—and all without recourse 
either to bonded debt or to any increase in its one per cent sales tax. In view of the 
difficulties that many of the wealthier states of the union are having in meeting 
these necessities and in view of the general stampede of state legislatures to heavy 
sales taxation, Oklahoma has in this respect a somewhat conspicuous distinction. 

On the whole, the tax legislation of 1935 represents one of the most constructive 
tax programs that has been enacted in the United States and we have no hesitation 
in saying that it will be recognized as such by students of taxation throughout the 
country. 


CHAPTER XXXII 

RECOMMENDATIONS ON TAX ADMINISTRATION 

The first essential in the formation of any broad legislative program is to have 
a reasonably clear conception of the objectives to be attained. In the general discus¬ 
sion of tax problems in Oklahoma we find two objectives commonly assumed for 

proposed tax legislation. One is “additional revenue” and one “relief.” We are 

inclined to suggest that the fundamental objective should be neither. 

Tax progress does not consist exclusively in finding ‘“new sources of revenue”; 
and tax reform does not consist in continually running with a bucket of water for 
the relief of incipient conflagrations in one quarter or another. Both things may 
become necessary from time to time; but a tax system based too exclusively on either 
is likely to be continually in need of both. 

In particular, a tax system ought not to be subjected to abrupt changes for 

every temporary revenue need that arises. Purely temporary or emergency needs 
should be financed by orderly processes of borrowing at the low interest rates which 
the sound condition of the state’s finances will enable it to secure and which it. should 
insist upon securing. Borrowing for purely temporary or emergency needs not only 
means lower cost to the government and less disturbance to taxpayers and to industry, 
but it involves less likelihood of saddling the state with an additional stratum of 
permanent expenditure than is the case when* every expansion of expenditure takes 
the form of new or increased taxation. It is easier to pay a debt than to get taxes 
down after they are up. 

All this means that a tax system should be geared to the economic resources of 
the state in such a way that its revenues will expand with expanding resources—and 
if they should contract somewhat with shrinking resources and prosperity, that is 

likely to be a wholesome result. It is one of the few effective means for compelling 
both government and citizens to re-examine occasionally the whole range of govern¬ 
mental activities and to make some choice of emphasis among essentials and non- 
essentials. 

But it is fundamentally necessary that the tax system be geared as closely as 
possible to the economic resources of the state, in the selection of sources and methods 
of raising revenue and in the total amount of revenue appropriated. A state will 
retrogress if it permits its governmental structure to lag too -far behind its economic 
and social development; but on the other hand, it cannot maintain a governmental 
structure that is top heavy in relation to its resources for supporting it. We would 
not build a six-cylinder engine on a buckboard. In the blackboard, plank-road days 
a one-cylinder mule, with adequate transmission and an accelerator in the whip 
socket, afforded reasonable eouilibrium between the power and the load. A tax 
system will be doing well if it maintains as close equilibrium between governmental 
structaare and the economic resources for saapporting it. 

There are—or should be—other agencies for gearing the government to the in¬ 
tellectual resoiarces of the state, to its moral and spiritual resources, even to its 
scientific, artistic, and cultural resources. The tax system will perform a humble 
but fundamental service if it gears the government smoothly to the economic resources 
of the state. 

The one most obvious most pressing and most fundamental need in Oklahoma 
at the present time is an honest and efficient administration of the taxes it already 
has: and we believe that the peop'e of the state will be wise if they levy no more 
taxes of any kind until they are assured of having a tax administration of this type. 

THE STATE TAX COMMISSION 

We have discussed in previous connections, the futility of continuing the State 
Board of Equalization. 

A simple, direct, constitutional amendment abolishing the State Board of Equalisation 
should be submitted at the earliest opportunity, and its functions shoidd be transferred- to the 
Tax Commission. 

Before this action is taken, however, a few things should be done to the Tax 
Commission. 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


465 


Tenure of Members. The spectacle of an entire Commission ancl more or less its 
staff and personnel changing completely with every gubernatorial campaign is a spec¬ 
tacle of confusion and disgrace. Taxation is an extremely complicated and technical 
field and becoming more so every day. Four years is long enough to learn something 
about it, if one is naturally bright. But if one brand of commissioners, division heads 
clerks, and stenographers goes out every four years, and another brand of commis¬ 
sioners, clerks, and stenographers- comes in, the probability of any of them learning 
much about tax administration is greatly reduced. 

Now there is no way of taking government “out of politics,” but there are types 
of administrative organization that will in some degree prevent subordinating the 
business of government to party and political interests. One such device has been 
found helpful in the experience of other states and is strongly recommended for 
adoption by Oklahoma. This is a provision for six-year terms for members of the Tax 
Commission and for appointment of one member every two years, instead of appoint 
nient and exodus of the whole Commission every four years. This assures to every 
governor the appointment of a majority of the members of the Commission during 
his term of office; and the schedule of appointments can be so arranged that one 
appointment will coincide with the Governor’s entrance upon his term of office and 
one will fall two years from that time. This assures the administration entire control 
over the policies of the Commission during the latter half of its term. 

But it also assures some continuity of personnel and policy, which is indispensable 
to sound tax administration. It means that there wall not be more than one new 
man coming upon the Commission at any one time, and that he will have opportunity 
to learn something about tax administration before being called upon to assume a 
major responsibility for the policies of the Commission. 

The members of the Tax Commission should be given six-year overlapping terms. 

Perhaps it should be added that there is no reason why a member of the Tax 
Commission who has rendered distinguished service should necessarily go out of office 
even at the end of six years. 

Tenure of Staff. With regard to division heads and members of the. staff of the 
Tax Commission, there is no reason why they should “rotate” with politics at all 
and every reason why they should not. 

The entire staff of the Tax Commission should be put upon an effective civil service 
basis and given the protection which such a system affords. 

Research Division of the Tax Commission. In spite of the pressure and confusion 
incident to a reorganization of the Commission, the new Tax Commission has taken! 
a highly commendable step, w T hich should prove of increasing importance to the 
taxpayers of the state. This is the definite organization and equipment of a research 
division. And this new division in the few months of its existence has already put 
out materials that have been quoted throughout the country. Under modern conditions 
the impacts of taxation upon the industrial and economic development of a state are 
so numerous and vital that no tax administration can function intelligently without 
continual research in these problems. In modern warfare the aviation service is said 
to he the eye of the general staff. In the same w r ay an active research division is the 
eye of an intelligent tax administration in developing its policies and in shaping its 
recommendations from time to time to the legislature. Without it, its activities will 
become mechanical and blind. 

And when we say research w r e mean scientific research, not press releases or 
scraps of statistics in support of pending legislation or administrative policies. A 
certain amount of this is inevitable; but too much of it will impair the work of this 
division and destroy the confidence of the people of the state in it. There are 
enough vital tax problems, and economic problems upon which tax policies should 
he conditioned, to keep the research division of the Tax Commission and the research 
facilities of the University busy for some years to come. It will be w r ise economy 
on the part of the state if, under the auspices of the Tax Commission it wall utilize 
the research; capacities of its University in developing this type of economic research. 
Pome of the most significant work of the New York and Wisconsin Commissions has 
keen done through this type of cooperation with the universities of those states. It is 


466 


ORGANIZATION AND ADMINISTRATION OF OKLAHOM. 


scarcely necessary to add that the work of those universities has bepi greatly en¬ 
riched thereby. 

AD VALOREM ASSESSMENT AND EQUALIZATION 

Local property tax levies for 1933 amounted to $51,000,000. We have estimated 
that even after the abolition of the state property levy and after the substantial re¬ 
ductions that have been made in assessed valuations, property taxes will probably 
represent something like 64 per cent of total taxes levied in Oklahoma. And with 
the exception of the sales and gasoline taxes, probably more people come in contact 
with the property tax or are directly affected by it than by any other major form of 
taxation. A tax that bulks so large in the revenues of government and in the tax burdens 
of its citizens is worth administering with some consideration of equitableness and 
efficiency. Yet the fact is that this $50,000,000 property tax is operated on rhe basis 
of a system of virtual self-assessment or a system of assessment that might have been 
appropriate for the simple conditions of the frontier times in which it originated. 
The statute does not provide for any actual appraisal of property by anybody. The 
assessor is not provided with the means for making actual appraisals; and to the 
extent that he does attempt appraisal of any particular type of property, there 
appears to be no process whatever of relating his valuation of this property to the 
valuations of other types of property or to the valuation of property in other districts 
or other counties. 

The result, according to general testimony, is extreme variation in the rate of 
assessment among classes of property arid among individual properties. Unfortunately, 
conditions of inequality of assessment always result in throwing disproportionate 
burdens upon the weaker groups and upon the standardized, familiar types of property 
su/'h as farms, houses, and smaller properties in general. The larger properties and 
the more technical and complex types of property are ordinarily beyond the scope 
of , the “judgment” of the assessor. 

And aside from the mere technical difficulties, it isn't common sense to expect a 
lone county assessor, elected for two years, and with a staff consisting of himself 
and an old typewriter, to be ab'e to stand up against the influence and legal and 
technical skill of a corporation that may represent millions of dollars. A research 
report is not the place for relating neighborhood anecdotes; if it were our report 
could be made amusing by relating the numerous occasions on which assessors have 
indicated frankly that a certain oil refinery or industrial or other large property 
was greatly under-assessed, and that they “couldn’t do anything about it,” but wished 
Tmt th ■ State Board of Equalization or somebody else would. We gather that pretty 
much everybody ini the state is familiar with these conditions. 

And we do not know that either the property holder or the assessor is particularly 
to blame. We can hardlv blame a corporaUon management for trying to keep its 
assessments down—it would not be doing its duty to its stockholders if it did not; 
and we can scarcely blame an assessor for trying to avoid the ranks of the un¬ 
employed. What it means is that if we expect to have a half-way competent and: 
equitable valuation of the three bilions of real estate and general propertv throughout 
the state, 1 some agency must be provided which not only will afford some degree of 
trained and technical guidance, but will also occupy a position of sufficient independ¬ 
ence to enable it to enforce eouitable valuations among large and smal properties 
alike and regardless of sectional interests. 

Obviously the only agency in position to do this, must be one representing the 
authority and the point of view of the whole state. Ordinarily this agency wan’d be 
the State Tax Commission; and the general trend of opinion among tax students for 
years has been toward the centralization of control over assessment in the Tax Com¬ 
mission or other state agency. With this general trend we are fully in accord: hut 
nevertheless “centralization” is no + the whole answer to the problem. If tax adminis¬ 
tration, for example, is going to be dominated by politics, it may as well be county 
politics as state politics. And under present conditions in Oklahoma we would be 


Compare estimate in Table III, Chap. I. of $2.(143,000,000 of real estate and personal 
property subject to local assessment. Under any other than depression conditions, this aggre¬ 
gate will substantially exceed three billions. 



ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


467 


inclined to defer comprehensive steps in the direction of centralization of assessment 
control until it can be seen more clearly whether the state will be able to develop the 
type of state tax administration which will insure a high level of technical competence 
and of political independence. Meanwhile we would suggest, as tentative steps, the 
following measures of reorganization. After the changes suggested above in relation 
to the Tax Commission have been made—or other changes to effect substantially the 
same results—two functions should be definitely assigned to the Commission. 

Supervision over Local Assessment. While continuing the present system of elective 
county assessors, authority for the supervision of their work should be conferred upon; 
the Commission. If this seems like mixing two different kinds of administration, it is 
only because we are thinking too much in terms of the abstract theory of govern¬ 
mental organization. Anyone familiar with practical tax administration knows the 
numerous conditions and the extra legal factors that make it entirely possible for 
a state agency to work effectively through locally elected officials, if it has the au¬ 
thority to do so. As a matter of fact, nine out of ten assessors are not only willing 
to cooperate, they are more than glad to avail themselves of the help and backing 
of a State Commission. It has been our observation in the past that any Commis¬ 
sion that has been unable to secure such cooperation on the part of local assessors 
has itself been lacking in ability or in knowledge of its problem. 

But this is conditioned on the possession of definite authority for supervision on 
the part of the Commission. And supervision means authority to prescribe forms, 
procedure, technique, and the whole process of assessment, in whatever degree of 
generality or detail may be found helpful. 

This means likewise that the working out of these procedures and processes and 
the instructions embodying them ought not to be the perfunctory task of some sub¬ 
ordinate member of the staff. It will be well worth the time of one of the three 
members of the Commission to specialize in the field of property; taxation, to familiarize 
himself with the problems—local, technical, and otherwise—throughout the state, and 
more or less to represent the Commission in this field of tax administration. He will 
find plenty to occupy him even for the six-year term we are proposing. If in so 
doing he should incidentally become an authority in this field, we hazard the pre¬ 
diction that he will have little difficulty in securing the cooperation of 77 county 
assessors in Oklahoma—even if they are elected by their respective communities. 

Authority to prescribe the forms, procedures, and processes of assessment and supervision 
over the county assessors should be assigned to the Tax Commission as one of its important 
functions. 

Review and Equalization. Under intelligent supervision of the initial assessment 
by the county assessors it will be found that the task of review will be greatly 
lightened, no matter by whom it is performed. Furthermore, the more accurate in¬ 
formation that will be available with regard to the general levels of valuation for 
different districts and classes of property will enable the county boards of equalization 
to perform their task much more intelligently. 

But the entire process of equalization will be greatly improved by conferring on 
l be Tax Commission not only the present powers of the State Board of Equalization 
but the further authority for direct revision of assessments, on complaint of tax¬ 
payers or on its own initiative. This should include revision by counties and districts, 
by c’asses of property, and revision of individual assessments. The exercise of this 
authority should not be limited to any prescribed formalities of procedure or hamp¬ 
ered by “red tape” proceedings of any kind. It should be considered as a part of the 
administrative function of the Tax Commission in the process of maintaining uniform 
property valuations throughout the state. Uniformity means nothing if it does not 
include uniformity among individual assessments and if any individual property owner, 
l-irg e or small, does not have the right to avail himself of the services of the State 
Tax Commission in securing it. 

It is scarcely necessary to add that the fundamental importance of uniform and 
equitable assessment of property is in no way diminished by the fact that the state 
government no longer derives revenue from this source. The measures outlined above 
are suggested as a means for attaining this type of assessment, regardless of the 


468 


ORGANIZATION AND ADMINISTRATION OF OKLAHOM. 


varying apportionment of the revenue therefrom among the different /governmental 
units. 

The State Tax Commission should have powers of direct revision of assessments, either 
on petition of taxpayers or on its own initiative. 

Our recommendation here is in line with the recommendation made by the former 
State Tax Commission under the chairmanship of Mr. Melven Cornish ; and the grounds 
for it are ably stated in the Report of the Oklahoma Tax Commission for 1934. 1 
With the general statement therein we are fully in agreement. The usefulness of the 
State Tax Commission to the taxpayers of the state will be greatly impeded until this 
authority is specifically conferred upon it. 

As a matter of fact, this authority will be exercised largely through the informal 
advisory relationships of the Tax Commission with the county assessors and the 
county boards of equalization. It does not mean that every time a complaint comes 
in the Tax Commission is going to rush out to some outlying county, hold a formal 
“hearing,” and issue some peremptory “order.” It means that complaints from various 
sections and various classes of property holders will ordinarily be made the basis for 
quiet investigation, for reference to previous assessment and valuation data already 
in the files of the Commission, and for recommendations to county assessors and 
boards of equalization for correction or adjustment in the next assessment. But any 
one familiar with any field of administration knows the difference between recom¬ 
mendations with authority and recommendations without; and in that difference very 
largely lies the story of effective tax administration. 


J pp. 27-31; 88-89. 



CHAPTER XXXIII 

RECOMMENDATIONS ON THE TAX POLICY 

We have grouped our suggestions here under the term tax policy in the hope 
that the state will find it possible to> adopt policies rather than merely enacting tax 
legislation. Most of the current tax legislation in the United States represents only 
a haphazard effort to secure immediate revenue, with no element of orderly policy 
underlying it; and frequently the more legislation, the less there is of any policy. 
Oklahoma,, after the tax revision of the past legislative session and the increased 
revenues which that will provide, is in a position where it will not be obliged to 
snatch at haphazard possibilities of additional revenue and where it can develop 
more deliberate policies in the field of taxation. 

THE PROPERTY TAX 

We find considerable discussion to the effect that the property tax ought to be 
abolished entirely and replaced by a single gross income tax or gross production tax 
or other universal form of tax. The yearning for some universal, simplified form of 
taxation is a perfectly normal one and arises largely from the unnecessary confusion 
and the incompetent administration of the heterogeneous taxes we now have. Most 
of the simplified universal forms of taxation are simple in name only. The gross 
income and gross production taxes, if we tried to apply them universally, would 
involve more complications than the property tax, and while they would lighten cer¬ 
tain forms of inequality in property taxation, they would inject additional inequalities 
as great or greater. Why should enormous quantities of wealth in the form of 
mineral lands and other natural resources, vacant land in urban locations of almost 
fantastic front'foot values, luxurious residences and extravagant country estates be 
exempt from taxation merely because for the time being they have no “gross pro¬ 
duction” and are yielding no “gross income”? 

There are simplified taxes, such as the poll tax and the salt and match monopolies 
ot European countries and many others; but most of them have vices more simple 
than their virtues. Unfortunately it is true in general that the most valuable things 
in life are not found growing on bushes, and it seems to hold particularly true in taxa¬ 
tion. 

It is apparent that for a long time to come local governments are going to con¬ 
tinue to depend on the property tax for a substantial portion of their revenues. And 
there is no reason in principle or theory why they should not. The two most univer¬ 
sally recognized indexes of financial capacity and taxpaying ability are property and 
income. Neither one is a perfect measure, and either one alone will produce discrimin¬ 
atory results. Indeed, this is the specific reason for holding that the most equitable 
tax system will rest on both bases; and there is no apparent reason for holding that 
it should rest any more on the one basis than the other. In the past our systems of 
local taxation have rested too exclusively on the property basis. This affords reason 
for still further reducing the proportion of total tax burdens represented by property 

taxes but not for any effort for the time being to abandon the property tax. 

Homestead Exemption. We are obliged to call attention to the unwisdom of 

further narrowing the property tax base by the exemption of homesteads or by any 
other general exemptions. We refer to it, because there has been a considerable move¬ 
ment in Oklahoma and other states in recent years for partial or complete exemption 
of homesteads. The history of property taxation in this country has largely been the 
history of the escape of one type of property after another from carrying its share 
of property taxes. The first exodus was that of the railroads and canals in the 
earlv days of the railroads, when railroad construction was subsidized by 
general exemption on the part of both state and local governments. The abuse 

of this period led to the adoption of the celebrated “uniformity” clauses in the con¬ 
stitutions of most of the mid-western states. The second exodus was that of stocks, 
bonds, and intangible property, coincident with the development of Corporations and 
the growth of securities and new types of intangible wealth. Subsequently there 
developed more or less wholesale evasion of taxes on the part of the railroads, public 
utilities, and other large corporations in consequence of the failure to provide admin- 



470 


ORGANIZATION AND ADMINISTRATION OF OKLAHOM. 


istrative machinery adequate to assess these types of property or to cope with the 
powerful corporations that owned them. And finally there has been a tendency for 
personal property in general to escape adequate assessment on account of the growing 
complexity of these forms of property and the ineffectiveness of assessment methods. 

The result is that a tax which at the outset rested firmly on the broad base of 
universal property ownership has had its base narrowed more and more by this 
process of constant erosion until now it more nearly resembles one of those “pivot 
rocks” that tourists admire, not for its massiveness and strength but for its ability 
to “teeter” indefinitely without tumbling. 

But we cannot continue this process of erosion forever without courting disaster. 
As a matter of fact, we have for some time been working to remedy the ravages of 
past errors. The early railroad exemptions were abolished in the course of a long 
struggle beginning in the middle of the last century. The assessment of the railroads, 
public utilities, and some other specialized types of property has been greatly im¬ 
proved by transferring this function to the State Tax Commissions. And if we have 
not discovered any means of effectively assessing intangibles, the development of in¬ 
come, inheritance, and other taxes has at least made it possible to reach more 
adequately the taxpaying capacity represented by intangible wealth. All of these 
are efforts in the right direction; and we have no hesitation in saying that improve¬ 
ment in the character of the property tax lies in the direction of further reducing 
the exemptions we have rather than in devising new ones. 

Many of the customary exemptions of educational, fraternal, and other types of 
property grew up in the midst of conditions that no longer exist. Most of the early 
colleges in this country were founded primarily for the purpose of training young 
men for the ministry; at that time athletics, dramatics, and aesthetic dancing were 
secondary. The early college fraternities founded by Jefferson, Madison, and others 
of their time were established for the purpose of discussing political philosophy; no 
provision was made for “proms,” dances, and rushing parties. Many of the early 
fraternal orders were founded for the purpose of providing decent burial for their mem¬ 
bers—when they could no longer attend the national conventions. All these things 
have changed. Why luxurious fraternity and sorority houses should be exempt, while 
the cheap “rooming houses” and boarding houses occupied by the poorer students 
carry a full burden of property taxation, can not be explained on any known principle 
of taxation. We will concede without argument that there is more reason for the 
exemption of homes to a modest amount than for the exemption of many of these 
forms of property that are now exempt. 

But this is not the way to remedy the situation. If homes are taxed too high, it 
means that other small properties are taxed too high likewise. This means farms, 
shops, stores, and small business and industrial establishments whose owners often 
are having a harder struggle than many comfortable homeowners. Sound remedy 
lies in working to secure lower property taxes, not in exempting some particular 
class and thereby shifting still heavier taxes to those who are left to carry the burden. 

In an effort to ascertain the extent to which exemptions of various amounts 
would reduce the total volume of property subject to taxation, the Advisory Committee 
on Revenue and Taxation projected a survey of home ownership and assessed valu¬ 
ations of property in a number of typical communities. Limited resources made it 
possible to complete only one such survey. This was a survey of the city of Still¬ 
water, made under the direction of Dean Raymond D. Thomas, now a member of 
the State Tax Commission. The ownership and assessed valuation of every home in 
the city of Stillwater was secured, and the effects of exemptions of $1,000, $2,000 and 
$3,000 computed. The total assessed valuation of taxable property in the city, for 
1033, was as follows: 


npal Estate ___$2,675,797 

Public Service Property _ 210,828 

Personal Property __ 367,207 


Total-$3,253,332 


It was found that 49.5 per cent of the homes in Stillwater were occupied by the 
owners, and 50.5 per cent were occupied by tenants. The total assessed valuation 
of the owner-occupied homes was $973,582. The effect of various degrees of exemp- 







ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


471 


tion upon the total tax duplicate, that is, the total amount of property subject to 
taxation, is indicated is Table I below. 

TABLE i 

EFFECT OF HOMESTEAD EXEMPTION IN STILLWATER 


Per Cent of Total 

Total Assessed Valuation of 

Valuation Property in Stillwater 

Exemption Exempt Wiped Out by Exemption 


$1,000 _j.__$675,488 20.8 

2,000 _ 895,047 27.5 

8,000 _ 942,617 29.0 

Entire Homestead _ 973,582 30.0 


It will be noted that the low level of assessment in relation to actual value, greatly 
magnifies the actual exemption; but this is one of the problems of exemption. A 
$3,000 exemption on property assessed at 45 per cent of actual value means an actual 
exemption of $6,670. 

The extent to which varying exemptions would wipe out successive strata of the 
total valuation of homesteads is graphically represented in the series of charts below. 
In Chart I the base line represents the number of homesteads, grouped by value 
classes, from the lowest-price class to the highest. The vertical dimension of the chart 
measures assessed valuation in dollars. The solid black areas, therefore, represent the 
number of homes in each class multiplied by the average value of homes in the class, 
or the aggregate valuation of all homes in a given class. 

The first area at the left, for example, represents the aggregate assessed valuation 
of all homesteads (owner-occupied homes) assessed at $1,000 or less. This happens 
to be 358 homes with an aggregate valuation of $212,76S. The last area or bar at 
the right represents the aggregate assessed valuation of the ten highest-priced homes, 
namely, $55,640. 











472 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


In this chart no exemption is assumed and the solid areas represent the extent 
to which the owner-occupied homes of Stillwater afford a basis for property taxation. 



?ho/ i r/7 7 y/i c/ orc'ors'r 



ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 473 

In Chart II the whitened area across the bottom of the chart represents the 
stiatum of valuation wiped out by a $1,000 exemption. 



r/vo/jm iva 



















474 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


Charts III and IV represent the effects of exemptions of $2,000 and $3,000 re¬ 
spectively. 



S-NO/lvmfa OJiyjyyp 


















ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


475 



Stillwater may not be typical of other communities, and it is suggested that 
the Tax Commission or other agency may well make similar studies in a half dozen 
or more other communities throughout the state in order to ascertain what the 
actual effects of various types of exemption would be. The people of the state wil 
then have an opportunity at least to be governed, in whatever action they take, by 
a knowledge of the actual facts rather than by the hasty legislation of Florida and 
other states. As a matter of fact, the past history of tax legislation in Florida and 
the present condition of its government finances are not such as to commend its 
policies for the emulation of other commonwealths. 

























476 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


Timing of Property Tax Payments. It will be recalled that in our analysis of the 
operation of the property tax in Chapter XXIX, attention was called to the interval 
of three to four months between the beginning of the fiscal year of local govern¬ 
ments and the payment of the first installment of property taxes for that year. The 
fiscal year begins on July 1. The first tax payment is due on October 1, becoming 
subject to penalty on November 1. In conferences on this subject the general opinion 
appears to be that the farmers’ dependence upon the sale of crops for cash with which 
to meet tax and other obligations would make it inadvisable to advance the date for 
payment by any considerable interval. The opinion has been expressed that these 
dates might be advanced one month, making the first payment due on September 1, 
subject to penalty on October 1; and that if a small discount were allowed for cash 
payment on September 1, as is now done in a number of states, sufficient payments 
could be anticipated to meet the requirements of local governments from that date. 

We gather further that the greater difficulties have arisen not from the statutory 
interval of three to four months from July 1 to- October 1 or November 1, but from 
the fact that frequently the processes of assessment, review, and equalization by the 
various official bodies concerned therewith have not been completed in time to assure) 
payments even on the legal dates for the first installment. By reference to the prop¬ 
erty tax calendar in Chapter XXIX, it, will be seen that the successive dates in the 
process of assessment, review, and so forth actually do not allow time for the orderly 
completion of these various processes in time for the county assessor to certify the 
tax roll promptly to the county clerk and county treasurer. The whole schedule from 
January 1, when the assessment is begun until August or September when it is as¬ 
sumed that the tax roll is completed, is seriously “jammed.” 

Any change of the fiscal year appears to be impracticable and perhaps undesirable. 
Consequently the only quarter in which there appear to be any leeway lies in the direc¬ 
tion of moving the date for beginning the assessment back into the period preceding 
January 1, and thereby securing more time both for the assessment itself and for the 
processes of review, equalization, and so forth subsequent to the assessment. 

This can be done without changing the date, January 1, as of which the valu¬ 
ations legally apply. No matter what the date “as of” which any assessment applies, 
everyone knows that the actual process of assessment—if there is one—must be carried 
on in the period preceding or following the legal date, or both. If an assessment of 
a whole county is to be made as of January 1, good assessment administration would 
demand that the assessor begin his work three months or six months prion to that 
date. And we suggest that steps be taken to bring about this practice. 

But this cannot be done under the present system of biennial assessment of real 
estate and under the present system of two-year terms for the assessor. The assessor 
is elected in November of even-numbered years and is required to make this assess¬ 
ment as of January 1 of odd numbered years, which means the January 1 immediately 
following his election. The biennial assessment could be set for even-numbered years, 
but this, if the two-year tenure is continued, would throw the assessment at the end 
of the assessor’s term of office and immediately preceding the election of himself or his 
successor for the next term, which would be an undesirable juxtaposition. 

Consequently we appear to be driven to the necessity of taking the bull by the 

horns, providing the assessor with a four-year term (which is desirable on many 
grounds anyhow), and permitting him to make two assessments as of January 1 in even- 
numbered years. This would permit an assessor to be elected in November 1934, take 
office January 1, 1935, get acquainted with his work during the next six months, and 
start his assessment July 1,, to apply as of January 1, 1936 and be completed at some 
early subsequent date, such as February 1. Ilis next assessment would then be begun 
on July 1, 1937, to apply as of January 1, 1938, and be completed February 1. 

The gist of this arrangment would be to secure an additional six months for the 

whole process of assessment, review, equalization, and extension of taxes. This is 
not too much time for the orderly performance of these various processes, and it should 
be enough to insure their completion promptly on the dates set for them. Of this, 
six-months leeway, we would suggest that three months be allotted as additional time 
for making the assessment, which would allow a total of seven months (July 1 to 
February 1) instead of the present period of practically four months (January 1 to 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


477 


fourth Monday in April) ; that two months be allotted as additional time for all 
the processes of review, equalization, and extension of taxes, which would allow a 
total of six months (February 1 to August; 1) in place of the present period of practi¬ 
cally four months; and that the remaining surplus of one month be utilized to bring 
the first tax payment date forward one month to September 1, with a small discount 
for cash payment on that date. 

It would be superfluous here to undertake to suggest specific dates for the various 
steps subsequent to assessment or to incorporate further details. But we believe that 
some such general step will be found necessary in order to relieve the present jammed 
condition of the property tax calendar. Some such plan as the one outlined would 
afford the county assessor time to make a real assessment; would open up wider 
spaces between the successive steps in the processes of review, equalization, and ex¬ 
tension ; and should insure completion of the entire process in time to permit prompt 
payment of the first installment of ad valorem taxes. 

Perhaps we should add that any legislation providing for changes in assessment 
procedure should embody a provision requiring the assessor or his deputies to actually 
view and place a valuation upon all real estate in his jurisdiction. In all of our dis¬ 
cussion of local assessment we are assuming that actual assessment, in the sense 
of viewing and valuing properties, is contemplated. Our suggestions above are shaped 
with a view to making this possible and to reducing as far as possible the friction 
and confusion that have sometimes accompanied the levying and payment of property 
taxes. 


GENERAL DIRECTION OF STATE TAX POLICY 

In the previous discussion we have expressed the view that, under the force of 
circumstances and for other reasons, the local governments should anticipate con¬ 
tinued dependence on property taxes as a major source of revenue for some time 
to come; that progress will consist in improving the assessment and the general 
administration and operation of the property tax; and that the long-term objective 
should be a gradual reduction of the amount and proportion of property taxes. The 
latter objective will depend, of course, upon the further development of taxes col¬ 
lected by the state, with a portion of the revenues allocated back to the local govern¬ 
ments, subject to certain general conditions which will be discussed later. 

When we come to the field of state taxation, our problem is quite different be¬ 
cause of the wide range of revenue sources and forms of taxation available to the 
state. And here we would suggest that Oklahoma adopt, as its general tax policy, 
a policy of moving gradually away from the cruder forms of production and con¬ 
sumption taxes or types of taxation that rest upon some basis of financial capacity 
or some principle of ability to pay. This does not mean abandoning other legitimate 
bases of taxation; it does mean limitihg them to the fields to which they properly 
apply. 

The “Benefit” principle, for example, the principle of paying taxes in proportion 
to benefits received by the taxpayer, is represented in the field of special assess¬ 
ments and in the gasoline tax, in so far as the tax is applied to highway purposes. 
In these fields the Benefit principle properly applies and should be continued. There 
are some other minor fields to which it might well be extended. Professional educa¬ 
tion, for example, is a type of benefit which only a small proportion of the popula¬ 
tion can afford even when the educational institutions are provided by the state. 
Certain students in the higher educational institutions, as recommended in another 
part of this report, should pay more nearly the cost which their education imposesi 
on the state, with some provision for a restricted number of scholarships for those 
of limited means, to be awarded on a rigid scholarship basis. 

But aside from such fields where the Benefit or other principle specifically applies, 
the general trend of modern taxation is away from regressive consumption taxes and 
burdensome business and production taxes toward types of taxation that rest more 
distinctly upon some measure of economic capacity. And we suggest in the further 
development of its tax system, both for purposes of state revenues and for apportion¬ 
ment to local governments, that the state shape its tax policy gradually but definitely 
in accordance with this trend. 


478 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


FORMS OF TAXATION 

This policy will imply the further development of income and inheritance taxes, 
taxation of natural resources, and perhaps certain fields of luxury taxation. We have 
already indicated, in our previous analysis of these taxes, the general line which 
such further development might well take and need only summarize our conclusions 
here. 

The Income Tax. The income tax in Oklahoma is capable of substantial develop¬ 
ment, particularly for the purpose of further replacing property and other taxes. 
This development should embrace the following elements: 

(1) Lower exemptions 

(2) Higher rates in the upper brackets 

(3) No exemption of dividends 

(4) Depreciation and depletion allowances should be limited by specific provisions that 
the total accumidated depreciation or depletion on any property may not exceed the 
original cost of the property. 

(5) Insurance companies should be taken out of the income tax. It is worse than a 
sleight-of-hand performance to try to figure what the “net” income of an insur¬ 
ance company is. In this sleight-of-hand contest the insurance company attor¬ 
neys and accountants can always be depended on to win over the Tax Commission, 
partly on account of the possession of fuller information with respect to their own 
companies. It is chiefly for this reason that the insurance companies and their 
representatives have always fought so strenuously for the privilege of paying an 
income tax. 

If the state ever expects to levy a proportionate share of burdens upon them, it will 
be necessary to deprive them of this privilege and to place them on a gross receipts 
basis. This means a gross premiums tax at the rate of 2 to 3 per cent. We 
suggest the latter rate. 

All this is only repeating the recommendations made in the Memorandum of Jan¬ 
uary 25 in Chapter NXXI. Each of these suggested changes will not only he in the 
direction of more equitable distribution of income tax burdens, but all of them will 
substantially increase the revenue yielding capacity of the income tax. If the legis¬ 
lature in its past session felt that our recommended maximum of 12 per cent on the 
highest bracket was too high, they should be heartened by the fact that at the 
moment of writing California has just adopted an income tax, with a maximum 
rate of 15 per cent. 

But raising rates and making other changes in the statutory structure of the 
income tax is only one way to increase its equitableness and effectiveness. The other 
way is a 100' per cent administration of the tax as it stands; and we would suggest 
that for the time being, effort be concentrated on this objective. Naturally there 
are no statistics of evasion, understatement, failure to make returns, and so forth; 
so that there is no basis on which to compute what the results of more effective ad¬ 
ministration might be. But from our observation of the operation of the income tax 
in Oklahoma over past years, we are of the opinion that the yield of the income 
tax could be doubled by a really effective administration. 

Effective administration, however, will mean some increase in cost in order 
to provide for necessary increases in the income tax staff, particularly in the number 
of accountants, auditors, and field men. And we would conjecture that in anything 
like normal times some increases in salaries wi’l be found necessary in order to secure 
and retain men of adequate training and ability for this, type of work. Such expansion 
of costs as this may involve will be found to be wise economy, not only in increased 
revenues but in the increased equitableness of the tax itself. It is vastly better 
to secure increased revenue from part areas of evasion and dishonesty than merely 
through levying heavier rates on those citizens who are already paying their taxes 
honestly and conscientiously. 

The Inheritance Tax. In order to secure some actual information about the size 
and distribution of estates to which any inheritance tax in Oklahoma would have 
to be adjusted, a proposed study of the records of the probate courts was outlined in 
December 1934. The resources available made it possible to complete only a limited 
analysis of the records of one year in the probate court of Oklahoma County. The 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


479 


year 1931 was selected in order to secure a period which would not reflect the most 
aggravated depression conditions, and a period far enough back to afford probability 
that most of the probate proceedings in that year would have reached final settlement. 
The data were collected under the direction of Dr. Leonard Logan, now a member 
of the State Planning Board. The results are indicated in Tables II and III. 

The net values here are the appraised valuation of assets as approved by the pro¬ 
bate court. Examination of the records would suggest that these appraisals tend 
in general to understate the actual value of these estates. 

TABLE II 

DISTRIBUTION OF ESTATES 

(As Indicated by Estates Frobated in Oklahoma Goiumty During the Year 1931) 


Classification Number of Average Aggregate Taxes Paid Per Cent of 

of Net Value Estates Net Net Under Former Taxes Paid 

of Estates in Class Value Value Statute to Net Value 


$ —$5,000 _ 209 $1,771 $ 370,223 $ 260.02 0.07 

5,000—10,000 43 7,052 303,245 None 0.00 

10,000—20,000 _ 27 14,481 390,988 2,460.16 0.63 

20.000—30,000 10 25,147 251.465 263.76 0.10 

30,000—40,000 5 35,523 177,617 270.76 0.15 

40,000 and over _ 2 57,874 115,748 1,774.25 1.53 


Total_ 296 $1,609,286 $5,028.95 0.31 


Limited as the sample is, it nevertheless suggests clearly the wide distribution of 
small estates. 

Table III indicates the proportions of real estate, tangible personal property, and 
intangible property in the gross value of these estates, before deductions of debts 
and other liabilities, in order to indicate the proportions in which these different types 
of property appear to make up the wealth of the community. 


table in 

STRUCTURE OF ESTATES 

(As Indicated by Estates Probated in Oklahoma County During the Year 1931) 


Classification 
by Net Value 
of Estates 

Real 

Estate 

Gross 

Value 


Per 

Cent of Gross Value 


Tangible 

Personal 

Property 

Intangible 

Personal 

Property 

Total 

Real 

Estate 

Tangible 

Personal 

Property 

Intangible 

Personal 

Property 

Total 

$ 0—$5,000 

$ 334,126 

$103,345 

$ 167,241 

$ 604,712 

55.2 

17.1 

27.7 

100.0 

5,000—10,000 — 

229,528 

21,495 

88,191 

339,214 

67.7 

6.3 

26.0 

100.0 

10,000—20,000 — 

236,733 

28,278 

156,207 

421,218 

56.2 

6.7 

37.1 

100.0 

20,000—30,000 — 

132,881 

3,325 

168,234 

304,440 

43.6 

1.1 

55.3 

100.0 

30,000—40,000 — 

156,845 


512,938 

669,783 

23.4 


76.6 

100.0 

40,000 and over 

30,350 

52,845 

36,735 

119,930 

25.3 

44.1 

30.6 

100.0 

Total 

$1,120,463 

$209,288 

$1,129,546 

$2,459,297 

45.6 

8.5 

45.9 

100.0 


Attention may be called to two significant features of these exhibits. The first 
is the fact that the total inheritance taxes paid by these estates was $5,028.,95, which 
is .3 of 1 per cent of their total net value and .2 of 1 per cent of their gross value— 
which is practically the value upon which ordinary property taxes are paid. This means 
that the total inheritance tax paid was about 1/10 of one year’s ordinary property 
taxes. Obviously the two taxes are in inverse proportion to what sound principles of taxa¬ 
tion would suggest. Wealth in process of passing from one generation to another can 
properly be asked to make a somewhat larger contribution to public needs than the 
burden that is imposed annually on the same wealth in process of actual productiol 
or accumulation in the hands of its original owner. It can be expected to make a 
larger contribution once in 40 years than once in every 12 months. Yet Oklahoma is 
taxing property more heartlessly than inheritance; taxing the production of wealth 
more rigorously than its mere acquisition through the channels of inheritance. 

The other most striking aspect of these estates is the large proportion of per¬ 
sonal property, particularly of intangible property. It is commonplace to say that 
under prevailing methods of taxation in Oklahoma and most other states this personal 
property has presumably paid negligible taxes during the lifetime of its owner. With 
no intention whatever of penalizing the decedent or his heirs for a result that is more 
or less incidental to our present methods of taxation, nevertheless it would seem that 




















4S0 ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


the least that could be asked would be a substantial tax upon this large proportion of 
intangible property at those long intervals when it passes from one generation to an¬ 
other. 

Implication. These are very limited data, but so far as they go they present a 
striking picture of one type of distribution of wealth. General information is to the 
effect that fuller information concerning wider areas throughout the state would differ! 
from this picture only in revealing greater extremes in both directions namely a wider 
distribution of small estates; and a small proportion of much larger estates than any in¬ 
cluded in our tabulation above. This type of wealth distribution implies two things 
about the structure of any inheritance tax adjusted to it. These are (1) low exemp¬ 
tions and (2) relatively high rates in the upper brackets. 

There are types of wealth distribution which have very different implications. In 
a state that happens to have large numbers of very large estates the exemptions can 
be high and the upper ranges of graduation high, the inheritance taix becoming then k 
largely a tax on the recipients of large fortunes, which under these conditions can be 
just'tied on both revenue and social grounds. In a state with, a wide distribution of 
small or moderate sized estates and few large accumulations of wealth, the exemptions 
must be low and the range of graduation may be moderate, the inheritance tax becoming 
then a means of deriving revenue from the general body of Citizens? on the basis of a 
form of taxation that imposes the least hardship. But in a state that has a wide dis¬ 
tribution of small estates, along with a considerable number of very large estates, any 
rational adjustment of the inheritance tax must embrace both low exemptions and a 
high range of graduation of rates. In a state cf this type, an inheritance tax that has 
only high rates in the upper brackets will yield no revenue; a tax that has both low 
exemptions and low rates of graduation is socially 'indefensible; and a tax which, like 
the former Oklahoma statute, combines both high exemptions and low rates is scarcely 
worth writing. 

In the first place, under modern conditions and modern types of business practice, 
any inheritance or estate tax must be buttressed with an effective gift tax. Otherwise 
the inheritance tax will largely be nullified by the wealthier groups, to whom it should 
particularly apply. We need not go> into detail—there are standard forms of gift taxes 
in operation in othler states—except to say that such a tax should apply to all gifts 
above a specified minimum, and that the rates should run substantially higher than 
those of the regular inheritance or estate tax schedule on account of the possibility of 
splitting property up into numerous gifts of relatively small amounts. 

In the structure of the inheritance tax itself the substance of our suggestion 1 is a 
device for securing some element of consideration for the heirs within la certain degree 
of intimacy, combined with the simplicity and effectiveness of a single exemption and 
single rate schedule on an estate tax basis. This feature was incorporated in the statute- 
adopted by the legislature of 1935. 

We would suggest that eventually the group of beneficiaries entitled to exemption 
should be narrowed to include only husband or wife, parents, and children, excluding 
other “lineal descendants” : that the single flat exemption he lowered from $15,000 to. 
$10,000, and eventually to- $5,0000 and that the rates be advanced to a maximum of 20 

per cent on that portion of taxable estate in excess of $1,000,000. 

The Severance or Gross Production Taxes. By reference to; our rough inventory of 
resources and (production in Chapter XXV and the discussions of total tax burdens in 
Chapter XXVIII, it. is apparent that the 5 per cent gross production taxes on oil and 
gas may be assumed to represent somewhere near the average burden of total taxes 

throughout the state. It is true that various classes of taxpayers are paying a larger 

proportion of their gross production. Investigations conducted by Professor ,J. T. San¬ 
ders. of the Oklahoma Agricultural and Mechanical College, indicate that farmers in 
Oklahoma, over the ten-year period 1924-33, paid property taxes equivalent to a gross 
production tax of 9.2 per cent. But it is obvious that farmers have for a long time 
been carrying disproportionate burdens, in terms of production and income. Progress 
lies not in bringing everybody else up to the level of farm taxes but in bringing farm 


3 See Chap. XXXI. 



ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


481 


taxes down to the level of everybody else. More exact information will hpve to be 
secured than is. at present available before we can measure relative tax burdens with 
the precision which would be desirable and which it is entirely possible to do. But on 
such rough information as is available,, it would appear that a 5 per cent gross produc¬ 
tion. tax, if applied to full actual production, puts the oil and gas Industries somewhere 
nearly on a level with that of general tax burdens throughout the state. 

This does not, however, provide any element of amortization for the exhaustion of 
irreplaceable resources. Sound principles of public economy demand that some element 
of compensation for the loss of these natural resources should be included in tax policy. 
If our 'state governments were so organized as to be able to handle competently large 
reserves in the nature of trust funds for the future, a substantial severance tax upon ex¬ 
haustible natural resources should be levied and devoted to building up public improve¬ 
ments or other permanent assets to replace these natural resources. But the handling 
of school land'funds and other state funds in the past has not been such as to suggest 
the wisdom of expanding the state’s responsibilities for permanent funds. 

Consequently our suggestion here will be limited to pointing out that the present 
5 percent gross production taxes do not apparently include any element of amortization; 
and that'the state will not have a sound policy in this field until it does recover a por¬ 
tion of its exhausted assets in the form of al somewhat higher tax upon these industries. 

The Motor License Taxes. We have indicated in our previous appraisal of the Okla¬ 
homa tax system (Chapter XXX), that while the motor license fee is in lieu of all 
property taxes on automobiles, the average license fee per vehicle registered in 1934 was 
only $5.80. This could scarcely by any conjecture represent more than the equivalent of 
a property tax of 1 per cent on full value, whereas general property throughout' the 
states is paying property taxes at a rate of something like 2 per cent on full value. 

There is no apparent reason why automobiles should not be construed to represent 
as much taxpaying ability per value as other kinds of property and why they should 
not pay a tax equivalent to the regular property taxes. There are very specific reasons 
why they should pay somewhat more than other property, not for highway purposes, 
which are assumed to be represented in the gasoline tax, but as a payment toward the 
special costs they impose foh traffic regulation, policing, hospital, and emergency service. 
There is every reason why automobiles, including busses, trucks, and every form of 
motor vehicle, should pay a license fee equivalent to the full rate of ordinary property 
taxation plus some payment for the special costs they impose. 

The present license fee in Oklahoma not only does, not do this but appears to be 
distinctly lower than the license fees of neighboring states, in most of which the license 
fee is in addition to regular ad valorem taxes. In the course of 1 correspondence with 
officials of these states, it appears that fer the latest years available in each case the 
average amount of motor license fees per vehicle is approximately as follows: 


Kansas --- $ 5.72 

Missouri- -- 8.87 

Arkansas --- 10.61 

Louisiana - 13.51 

Texas - 10.56 

New Mexico- -- 9.70 

Average _ $ 9.83 


It is apparent, therefore, that there is sound reason for increasing the amount of 
the motor license fees, and we recommend that this source be utilized when there is 
need for additional revenue. 

But while suggesting an increase in the amount of the motor license fees as a 
legitimate source of increased revenue, we believe it will be possible to reduce somwhat 
the cost and irritation in connection with the issuance of license plates. In our previous 
analysis and appraisal of the tax systems in Chapters XXIX and XXX we have dis¬ 
cussed the present method of issuing license plates through the so-called “tag agents.” 
It was pointed out that the 136 tag agents of the state are apparently paid something 
like $261,000' for the simple process of handing out license plates, while only $350,000 
is paid for the expenses of the 77 county assessors’ offices and their staffs in making the 
general property assessment for the entire state, Evidently these two fields of tax ad¬ 
ministration are badly out of proportion. 









4S2 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


After extended conferences on this question we have thus far been unable to dis¬ 
cover any reasons for the continuance of the “tag agents” at all. These are not liorse- 
and-buggy licenses in horse-and-buggy days, when all the agencies of government had to 
be located within a 15 mile radius of everybody. These are days of mail-order houses, 
among other things ; and we see no reason why the Tax Commission should not handle 
by mail the issuance of the annual motor license plates. We would dispense likewise 
with the “notarizing” of application, which, so far as we have been able to observe, 
adds nothing to their veracity or accuracy. Such help as anyone may need in tilling 
out the specifications of the application form, he can get from the dealer who sells 
the car or from the service station that takes the bumps out of liis fenders. 

Insurance Company Taxation. We have discussed insurance taxation in connec¬ 
tion with the income tax and will only repeat here that the insurance companies will 
contribute little to the fiscal needs of the state until they are all put on the basis 
of a gross premium tax, at a rate of 2 to 3 per cent. We would suggest the latter 
rate. 

Repeal of Tax Legislation. In all of our previous discussion it happens that we 
have been recommending increases in various forms of taxation, not with a view to 
increasing the total burden of taxes, but with a view to developing a tax policy that 
will be characterized by dependence in the main upon types of taxation resting on 
economic capacity or other sound principles. But as rapidly as such a tax policy is 
developed, it carries with it the implication of reduction or abandonment of taxes 
that do not embody these principles. In this field we suggest that the state follow 
two Hubs of policy. 

The first is the gradual further reduction of the proportions represented by prop¬ 
erty taxes i-n the total tax burden of state and local governments. The second is the 
repeal of any general consumption taxes, such as the cigarette tax and the sales tax. 

If the cigarette tax were thought of as a form of sumptuary regulation, designed 
to reduce the amount of cigarette smoking, it might be looked upon with complacency 
by those of us who smoke pipes, cigars—and stogies. As a matter of fact, it has no 
such effects; and as a tax, particularly in the form of a flat tax per package, re¬ 
gardless of differences in price, it becomes a pure consumption tax, concentrating the 
bulk of its burden upon the poorer classes of consumers. It 'is an! extremely effective 
emergency tax, and should be used for that purpose whenever the need arises. After 
the emergency is past, it should be promptly repealed. 

What has been said of the cigarette and similar taxes applies likewise to the gen¬ 
eral sales tax, but applies with increased force because the sales tax rests on all com¬ 
modities. and rests with aggravated burden upon the necessities cf life and upon all the 
purchases of the poorer classes throughout the state. As an emergency tax, it serves an 
admirable purpose and serves it promptly and effectively. For any other purpose it is 
difficult to defend it on any principle of fairness or justice. 

As a matter of fact the sales tax represents a reversion to mediaeval forms of tax¬ 
ation. It was imported from Europe in the depression following the World War. Under 
the stress of the present depression it has had a wide development and. one that can bo 
justified if it is limited to the duration of the present emergency. It will be found diffi¬ 
cult to limit it to this purpose on account of continuing revenue needs in most of the 
states and on account of the vigorous, support pf organized groups who find in the sales 
tax a convenient weapon against the further development of income, inheritance, and 
similar taxes. How long the present sales tax legislation will continue on the statute 
books of the state no one can predict. But of one thing we may be certain: How long 
it continues will he determined not by its merit but by the ability of wealthier groups 
to shift the burdens of taxation to the poor. 

APPORTIONMENT OF REVENUES TO LOCAL GOVERNMENTS 

We have suggested above the further reduction of the proportion of revenues rep¬ 
resented! by property taxes, which necessarily implies a larger allocation of state taxes 
to local governments. This in fact ‘is a well-defined trend throughout the country at the 
present time. With this general trend most tax students are in accord, and we would 
anticipate the further development of this trend in Oklahoma. 


ORGANIZATION AND ADMINISTRATION OF OKLAHOMA 


483 


But before any further development in this direction is contemplated, it will be 
found to be almost indispensable to devise some degree of co'ntrol or supervision or 
specification on the part of the state with regard to« the application of these apportion¬ 
ments. It will be extremely dangerous if the state government becomes merely an; 
irresponsible collecting machine—a kind of “cash register’’ for local governments. The 
present spectacle of insolvency and confusion in local government finances, the ex¬ 
pensive and yet inefficient type oft public schools maintained in various sections of the 
state, the absence even of intelligible accounting information about the financial op¬ 
erations of local governments, with the state doing nothing about it except continuing 
to hand out millions of dollars of taxes to these local governments—all this does not 
bode well either for governmental economy or for a high level of governmental ser¬ 
vices. 

The field of local government organization and of the relationships of state and 
local governments does not come within the scope of this study. Consequently we will 
limit our comment here to pointing out the fundamental relationship of this field 
to the development of the type of tax policy w T e have recommended. We have sug¬ 
gested the further reduction of property taxes, the further development of various 
forms of state taxes, and the development of a policy of securing a larger portion of 
the revenues of local governments through the channels of taxes administered and col¬ 
lected by the state. We wish to point out here in all clearness that the policy em¬ 
bodied in our third recommendation is conditioned on the parallel development of some 
degree of responsibility and control on the part of the state over the expenditures 
and financial operations supported by these state funds. Without this, the policy we 
have ventured to‘suggest will be both unwise and dangerous. 


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